Nestlé cuts 15% of its Africa workforce
| Africa
Swiss food and drinks company Nestlé SA is cutting 15% of its workforce in 21 African countries because it says it overestimated the rise of the middle class, the Financial Times reported.
"We thought this would be the next Asia, but we have realised the middle class here in the region is extremely small and it is not really growing,” Cornel Krummenacher, chief executive for Nestlé’s equatorial Africa region, told the Financial Times in an interview.
He also said Nestlé would be lucky to reach annual 10% growth in Africa in future years, and with the cuts, the company hoped to break even next year.
Nestlé Nigeria reported a 51% fall in pretax profit to 3.48 billion naira in the first quarter.
News Category
- International retailers
- On the move
- Awards and achievements
- Legislation
- Wine and liquor
- Africa
- Going green
- Supplier news
- Research tools
- Retailer trading results
- Supply chain
- Innovation and technology
- Economic factors
- Crime and security
- Store Openings
- Marketing and Promotions
- Social Responsibility
- Brand Press Office
Related Articles
Massmart says civil unrest cost the company R2....
Massmart said it would pay R650 million out of its own pocket after the looting in KwaZulu-Natal and parts of Gauteng in July was not fully recovered from its insurance cover.
Dineo Faku | IOL
Massmart, owners of Game, Makro and Builders Wareho...
Sasria pays Clicks R217m of KZN claim
South Africa’s leading beauty, health and lifestyle retailer Clicks yesterday dimmed its earnings forecast as sales in the last seven weeks of the financial year ended August 2021 were significantly impacted by the civil unrest in KwaZulu-Natal (K...
Africa Trade Week Launches Digital Exhibition P...
Africa Trade Week, owned and operated by dmg Events in South Africa, announces that its 2021 edition will take place entirely online from 23 – 25 August 2021.
Government’s plan to help businesses recover fr...
President Cyril Ramaphosa has unveiled plans to assist businesses caught up in the recent unrest in KwaZulu-Natal and Gauteng, and those SMMEs that have been affected by the Covid-19 pandemic that has ravaged the country’s economy.
Cyber Attack on Transnet Cripples the Movement ...
The Road Freight Association (RFA) is dismayed and gravely concerned about the cyber-attack on Transnet. This is creating massive delays and creating unreliability of the movement of goods across all modes of transport – with road freight bearing ...