Nestle, the world's largest food company, recently announced it will cut 16,000 jobs globally over the next two years to reduce costs and manage sluggish sales. This decision comes after a change in leadership and an investigation into previous management practices.
• The layoffs will primarily impact administrative roles, with 12,000 white-collar jobs affected. An additional 4,000 positions in manufacturing and supply chain are also set to be eliminated.
• The company aims to save 1 billion Swiss francs (about $1.25 billion) by the end of next year, increasing to 3 billion francs by 2027.
• Nestle's new CEO, Philipp Navratil, emphasized the need for the company to adapt quickly to changing market conditions.
• Despite experiencing a 1.9% drop in sales for the first nine months, there was a slight recovery with a 4.3% organic growth in the third quarter.
• The restructuring includes reviewing business sectors like water and premium beverages to focus on strong performers such as coffee and sweets.
• The job cuts represent nearly 6% of Nestle's total workforce of 277,000.
• Concerns have been raised regarding the potential impact of these layoffs on American workers and the importance of supporting local businesses.
Nestle's job cuts reflect broader challenges in the food industry and raise concerns about the future of employment within large multinational companies. The company's shift towards automation may influence operational efficiency, but could also heighten the economic vulnerabilities faced by workers.
https://economiccollapse.report/worlds-largest-food-company-cuts-16000-jobs/
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