GERMANY—Nestlé, the Swiss multinational food and beverage company, is set to implement workforce reductions at its Frankfurt headquarters.
The decision comes as part of Nestlé’s broader restructuring efforts to optimize operations and enhance market focus.
The Swiss giant plans to lay off “slightly more than 100” staff at the Frankfurt site, which currently employs approximately 1,500 individuals. Nestlé cited the need to align its operations with market demands better, make more focused decisions, and enhance collaboration within international structures as the primary reasons for the workforce adjustments.
Nestlé Germany emphasized its commitment to finding socially acceptable solutions for affected employees, with options such as retirement, part-time retirement contracts, or internal opportunities for further development being considered. The company is currently in discussions with workers’ representatives regarding the next steps in the process.
The restructuring initiative follows Nestlé Germany’s net sales decline of 4.5% in 2023, amounting to SFr 22.1 billion (US$2.4 billion). Despite the challenges posed by the evolving market landscape, Nestlé maintains a significant presence in Germany, operating 12 factories that produce a wide range of beverages, prepared dishes, confectionery, and pet products.
In November, Nestlé announced a separate restructuring affecting its sales workforce in Germany, impacting approximately 80 jobs. As part of this reorganization, sales activities for coffee, confectionery, and dairy products in Germany were planned to be outsourced to an external partner, while brands like Maggi and Purina Petcare would continue to be managed internally.
Meanwhile, Nestlé has faced scrutiny over its Cerelac brand following revelations of high levels of added sugar in its products sold in India and other developing markets. Despite the company’s efforts to reduce added sugar content, industry observers remain skeptical and urge Nestlé to prioritize the development of healthier, low-sugar innovations.
Nestlé partners Dr. Reddy in India
In a separate development, Nestlé India has entered into a venture with pharmaceutical group Dr. Reddy’s Laboratories to manufacture and sell medical-nutrition products and supplements.
Nestlé India initially holds a 49 perce stake in the venture, with plans to increase its shareholding up to 60%n percent after six years, focusing on categories such as metabolic, hospital nutrition, healthy aging, and child nutrition.
The joint venture between Nestlé India and Dr. Reddy’s Laboratories is expected to commence operations in the second quarter of Nestlé India’s 2024/2025 financial year, signaling Nestlé’s commitment to diversifying its product offerings and expanding its presence in key health and wellness segments.
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