Nestlé, a multinational food and beverage company, has announced plans to cut jobs in response to pressures from overcapacity and market changes. The company, which employs over 330,000 people globally, has been facing challenges in the current market scenario.
Thierry Van Basten, CEO of Nestle SA, stated that the company is making adjustments to address the current market conditions, which have led to increased competition and pressure on the company’s ability to make profits. As a result, Nestle will be axing jobs and restructuring certain business units to better align with the current market demands.
The company is also planning to focus on its core businesses, such as coffee, pet food, and infant nutrition, while reducing its presence in other areas. Nestle’s strategic review, which was announced in 2020, will lead to a streamlining of its operations and a shift towards more modern and agile businesses.
The company has not specified exactly how many jobs will be cut, but stated that it will apply both voluntary and compulsory redundancies across various countries and business units. The restructuring process is expected to be completed by the end of 2023.
Nestlé is not the only company in the food and beverage industry facing challenges. Other major companies, such as Kraft Heinz and Unilever, have also announced similar measures to adapt to the changing market landscape.
In recent years, Nestlé has faced various challenges, including changes in consumer behavior, increased competition from smaller, more agile players, and overcapacity in certain markets. The company has also faced criticism for its environmental and social impact, which has led to a shift in public perception and consumer behavior.
Efforts to address these challenges include the elimination of its word ‘Popular’ prefix from product packaging, as well as initiatives around sustainability and recycling. The company has also been working to reduce its environmental impact, including a commitment to use 100% renewable electricity by 2025.
The job cuts announced by Nestlé are a response to a combination of market pressures and internal reorganization. The company aims to restructure its operations to better compete in a rapidly changing market that is becoming increasingly challenging and competitive.