Economy: Covid-19 causes the elimination of more than 1,500 jobs at Danone
The Danone logo on a pickup truck in Mexico City.
(Drawing).
REUTERS - Edgard Garrido
Text by: RFI Follow
2 min
The food giant Danone will cut 1,500 to 2,000 jobs.
The group wants to simplify its organization in order to resume growth.
In question, the crisis caused by the coronavirus pandemic.
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The cuts decided by Danone represent a quarter of the workforce at world headquarters.
Of these 2000 jobs cut, 400 to 500 are based in France, and are mainly directors and managers.
The French group announces a reorganization plan to conserve its cash flow.
This year, turnover fell 5.5% to 18 billion euros.
One billion euros in savings in 2023
Danone's difficulties are directly linked to the health crisis.
The closure of bars and restaurants has caused sales of bottled water to drop.
Sales were therefore halved.
To reconnect with growth, the group wants to simplify its organization and reduce structural costs, particularly in headquarters.
The reduction in administration costs will thus represent a saving of 700 million euros.
Danone will also robotize its factories to reduce the cost of products sold by 300 million euros.
In total, the group is targeting a billion euros in savings in 2023, and hopes for a return to growth in the middle of next year.
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