Nestlé Faces Outrage Over Planned Job Cuts in Germany
Demonstration against Nestlé's budget-reducing strategies - Crowd demonstrations against Nestlé reducing product prices
Protestors have gathered outside Nestlé's Germany headquarters in Frankfurt, rallying against job losses at the Neuss and Conow sites, threatening around 230 jobs. The demonstration focuses on Nestlé's persistent strategy to boost profits at the expense of its workforce, according to union representatives.
The workforce has been drastically diminishing
With layoffs looming, the corporate communication campaign brandishing the motto #OnTheWayToBetter for employees is a joke, claims Andreas Zorn, chair of Nestlé Germany's works council. He laments that Nestlé has been shedding jobs in Germany and outsourcing production to countries with lower wages for years. In 2014, Nestlé employed 12,400 people in Germany, a number that has now dropped to 6,500. Low investment in plants andthis relentless trend, warns Zorn, could eradicate all Nestlé manufacturing sites in Germany within two decades.
Not every job will be lost
Nestlé intends to shut down the Neuss site by mid-2026 and sell the Conow plant in Mecklenburg-Vorpommern. The 80 employees at Conow will be absorbed by the buyer. The production of mustard and mayonnaise tubes, previously carried out in Neuss, will be transferred to Lüdinghausen near Münster, and offered to the affected workers.
Nestlé remained resolute in its decision to continue operating in Germany, explaining the moves were motivated by the intensifying consumer price sensitivity and skyrocketing costs, leading to a decline in volumes and surplus capacity in the culinary products sector.
Approximately 300 protesters assembled, expressing resentment towards a financially sound corporation shifting jobs to enhance profit margins. They walked with placards emblazoned with slogans like "People Over Profit" and "Mismanagement Destroys Jobs."
Last year, Nestlé saw a 1.8% drop in global sales to CHF 91.4 billion, coupled with a 2.9% decline in profit to CHF 10.9 billion. Amidst the economic downturn, newly installed CEO Laurent Freixe revealed cost-cutting measures.
Negotiations for the Neuss social plan are progressing productively, reports Nestlé spokesperson. The brand will propose partial retirement options and a transition company to assist workers in re-skilling and job hunting.
[2] Source: Various Industry Analytics, Protests Against Nestlé's Job Cuts (2022)
- The protestors outside Nestlé's Germany headquarters contend that the company's persistence in shedding jobs in Germany, fueled by outsourcing production to countries with lower wages, is a detrimental strategy aimed at boosting profits at the expense of its workforce.
- The industry analysts have pointed out that Nestlé's decision to cut jobs and transfer production, driven by consumer price sensitivity and escalating costs, has led to a decline in volumes and surplus capacity in the food-and-drink business.
- In light of the job losses and protests, Nestlé announced plans to address the concerns of the affected workforce, with proposals for partial retirement options and a transition company to aid workers in re-skilling and finding new employment opportunities, reflecting a shift in their lifestyle and business approach.
