News Reorganization
Danone cuts thousands of jobs due to corona crisis
Dairy giant Danone announced on Sunday (November 22) that it would cut its workforce. About 2.000 jobs will be cut to boost profitability. Like many other companies, Danone is also suffering from the corona crisis.
The dairy processor is forced to cut a large number of jobs, partly due to the decline in the sale of bottled spring water to the catering industry. A quarter of the positions lost are in the Paris headquarters. With the reorganization, the company aims to achieve ongoing cost savings of more than €2023 billion by 1. The total one-off cost of savings amounts to €1,4 billion in the period 2021 - 2023.
International reorganization
Danone has approximately 100.000 employees worldwide. In addition to the head office jobs, another 400 to 500 jobs will disappear in the rest of France. The remaining positions to be deleted will be transferred elsewhere. So far it is unknown whether jobs are also at risk in the Netherlands.
According to CEO Emmanuel Faber, with this reorganization the dairy group wants to focus more on geographical areas instead of on product categories. As a result, the company hopes to become more agile and better able to cope with unexpected events such as the corona pandemic. Due to all the events, Danone's shares have fallen in value by just under 30% this year.
FrieslandCampina
Not only Danone is carrying out a major reorganization, FrieslandCampina recently announced the company too some big changes to subject. There is also a significant wave of layoffs here. cutting 1.000 of the 24.000 jobs. Factories are closed, brands come up for sale and the company moves the now Dutch financial heart to Budapest. All this should save the dairy processor €100 million annually.
Jorine Cosse
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
