nestle layoff
Nestle, a big company in the FMCG sector, has planned to lay off 16 thousand people. This decision was taken a few weeks ago by the new CEO Philip Navratil, who has just taken charge of the company. He has promised to rapidly transform and revive the company. This job cut will be about 6 percent of Nestle’s total workforce. CEO Navratil said on Thursday that the world is changing, Nestle will have to change faster. For this, tough but necessary decisions will be taken, like reducing the number of employees.
Layoff details in Nestle
Nestle is the country’s largest FMCG company. Which makes Nespresso coffee capsules and KitKat candy bars. Nestle said that these cuts will take place over a period of 2 years. It will be on a global level, meaning people will lose their jobs in every country where the company operates. This will cut 12,000 white-collar jobs, plus 4,000 jobs are already being cut in production and supply chain. Overall, the company will lay off 16,000 people in the coming time.
CEO’s ambitious targets
The company says that these cuts will result in savings of 1 billion Swiss francs, which is double the earlier planned amount. Navratil was shocked when the company released the figures for 9 months. Sales fell 1.9 percent to 65.9 billion Swiss francs. But sales did not grow more than expected. Nestle shares were up 3.4% in pre-market trading on Julius Baer. This year the company’s price increased by 1.7%, which is behind the 8% growth of the Swiss market index. Philippe Navratil joined Nestle in 2001 and has decades of experience. After taking charge, he hinted that the previous strategy would continue. His priorities are to increase advertising spend, bet on small but big product initiatives, and sell underperforming units.
company result
The company’s profit has declined from Rs 986 crore to Rs 753 crore as compared to the second quarter of last year. There has been an increase in the company’s earnings, which has increased from Rs 5,104 crore last year to Rs 5,644 crore. EBITDA has also increased from Rs 1,168 crore to Rs 1,237 crore, however, margin has declined from 22.9% to 21.9%.