Danone will cut as many as 2,000 jobs, including one in four positions at its global headquarters, as the world’s largest yogurt maker attempts to revive profitability after getting hit by the coronavirus pandemic harder than other rivals.
The company said Monday it’s considering moving global headquarters for its various businesses closer to the base of its French operations in Paris. Annual cost savings should reach 1 billion euros ($1.2 billion) by 2023 after the measures, also fueled by more efficient purchasing. The job cuts represent about 2% of Danone’s total staff.
Chief Executive Officer Emmanuel Faber, who started the year with a focus on sustainability, is changing tack to address internal management shortcomings. The company has struggled for years to breathe life into its European dairy division despite introducing dozens of new products. Now with the pandemic, its bottled water division is reeling as restaurants shut down.
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