FRANCE – Nestlé, the world’s largest food manufacturer, is set to cut approximately 150 jobs in France as part of a strategy to significantly reduce its sales force. 

This decision has raised concerns among labor unions, with the CFDT Agri-Agro trade union citing that the company is planning to outsource marketing for several key brands, including Nestlé cereals, Maggi, and Nesquik. 

According to the CFDT, this move follows Nestlé’s sale in July of its baby food assets in France, which they argue serves as a “pretext” for the upcoming changes. 

The union contends that this action is part of a broader trend towards increasing profitability, often at the expense of job security for employees. 

Nestlé’s French subsidiary has refrained from confirming the specifics of the job cuts or the exact number of positions that may be eliminated. However, the company acknowledged that discussions are ongoing with unions. 

“A dialogue is currently ongoing with the unions as part of an information-consultation process, for which a decision is expected to be made by the end of the year,” Nestlé France stated. 

They emphasized that the proposal remains in its initial stages, prioritizing engagement with employee representatives. 

The CFDT has been vocal in its opposition to the proposed changes. In a recent meeting, staff representatives expressed their discontent, arguing that the initiative, framed as a “growth project” by management, primarily aims to fulfill the profitability demands placed by the corporation. 

“This model is, in fact, very clearly designed to meet the profitability imperatives imposed by the group,” the union remarked. 

Nestlé attributes its decision to a “thorough reflection” on the evolving market dynamics it faces. 

The company has cited several factors contributing to this need for change, including a highly competitive landscape, significant transformations within the French retail sector, and an evolving brand portfolio over recent years. 

Nestlé emphasized that these shifts necessitate an adjustment in the activities handled by its sales force in France. 

Earlier this month, Nestlé lowered its organic sales growth forecast for 2024 for the second time this year following weakening consumer demand. 

Presenting the nine-month sales figures, CEO Laurent Freixe announced that Nestlé now expects organic sales growth of around 2 percent for the year, down from previous estimates.   

The company’s underlying operating margin is anticipated to reach 17 percent, while earnings per share growth in constant currency is expected to remain broadly flat. 

During the nine-month period ending in September, Nestlé’s sales declined by 2.4 percent year-on-year, totalling CHF 67.1 billion (US$77.4B).   

Organic growth for the period stood at 2.0 percent, almost identical to the 2.1 percent reported in the first half of 2024.   

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