Danone Cuts 2,000 Jobs to Help Company Survive the Pandemic

Danone Cuts 2,000 Jobs to Help Company Survive the Pandemic

Danone, like many dairy companies, has struggled to survive the demand destruction caused by COVID-19. To cope with the financial chaos and attempt to return to profitability, the global dairy giant is cutting up to 2,000 jobs. 

The company says the cuts will include one in every four positions at its headquarters, which could be moving closer to Paris where its French business is located, according to a Bloomberg article. Company officials say the annual cost savings from the cuts should reach $1.2 billion by 2023 after the measures, which they hope will enable them to ride out the pandemic. 

Bloomberg reports the job cuts represent about 2% of Danone’s total staff. 

In a call with analysts, Chief Executive Officer Emmanuel Faber admitted the company has struggled with its European dairy division over the years despite an abundance of new products. 

“We had structural weaknesses in the way we worked and organized,” Faber said during the call. “We were over-innovating and pushing products we weren’t able to support or that wouldn’t make it as a lasting innovation. It was a misuse of resources.”

The Financial Times reports that the reorganization will give more power to country managers. The move follows an earlier announcement from Faber to overhaul the groups management and his intention to sell underperforming businesses and reduce the company’s product portfolio. 

One of the Danone products facing the most harm is bottled water. Their bottled water business has suffered from the close of restaurants and remote working which caused a 17% contraction in sales from January-September, the Financial Times reports.

Still, the company known for its sustainability efforts in the dairy industry, doesn’t intend to abandon those plans any time soon. 

According to Bloomberg, Juergen Esser, who became chief financial officer last month, said the planned 2 billion-euro sustainability investment over the next three years remains broadly unchanged, however, in the short term it needs to adjust to the pandemic because of disruptions in the local plastic market. 

Tags

 

Latest News

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Success is All in the Details at Kansas Dairy Development
Success is All in the Details at Kansas Dairy Development

Kansas Dairy Development provides temporary housing for up to 80,000 head of cattle — from a few days old to springers nearly ready to calve. Their formula for success is all in the details.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company
Built Out of Love: How Two Sisters Created a Super-Fast-Growing Yogurt Company

Travel to the rolling hills of Pennsylvania, and you’ll meet Hayley and Stephanie Painter who not only made the Forbes 30 under 30 list, but have also created one of the fastest growing yogurt company in the U.S.

"Boring" Technology Will Reshape Dairy Over the Next 10 Years
"Boring" Technology Will Reshape Dairy Over the Next 10 Years

Once a technology becomes a boring experience it means it has become proven, well-adopted, and easy to utilize. There are three "boring" technologies silently shaping the industry.

Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards
Influential Dairy Leaders Awarded World Dairy Expo Recognition Awards

World Dairy Expo is delighted to announce the recipients of the 2024 Expo Recognition Awards. These individuals have made remarkable contributions to the dairy industry and their communities.