Nestle to cut 400 jobs in France

Activist shareholder Third Point has applied increasing pressure to provide better returns of investment to shareholders.

On Friday, Swiss food group Nestle stated that it plans on cutting 400 jobs in France in support services and HQ functions.

The cost cutting exercise is aimed at boosting efficiency, said Nestle.

According to Nestle’s spokesman, although the firm, which employs 13,000 people in France, wants to avoid layoffs, attrition in head count was necessary as it consolidates its seven sites around Paris into a single one, scheduled to be completed by 2020.

In September 2017, Nestle, the world’s largest packaged food firm, had announced its plans of cutting 450 out of 550 jobs at its Galderma skincare research center near Nice.

Activist shareholder Third Point has been applying increasing pressure on Nestle to improve returns on investment.

In June 2017, Third Point revealed its $3.5 billion stake in Nestle.

Nestle has supported some of Third Point’s demand, including buyback of shares and has set a margin target.

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