Fighting Job Cuts: Nestlé Workers Take a Stand
Demonstration against reduced earnings of Nestlé company - Demonstrations amidst Nestlé's Decreasing Product Pricing
In a demonstration of resistance, employees of the global food powerhouse, Nestlé, gathered outside the company’s headquarters in Frankfurt, Germany. The protest was ignited by plans to axe around 230 roles at the Neuss (near Düsseldorf) and Conow (Mecklenburg-Vorpommern) facilities. The NGG union accuses Nestlé of a prolonged strategy to prioritize profits over jobs, as the world's largest food maker.
Employee numbers halved in six years
In the face of pending layoffs, the #OnTheWayToBetter communication campaign leaves a bitter taste for employees, according to Andreas Zorn, chairman of the works council at Nestlé Germany. He states, "This has been going on for years. Nestlé has been systematically eliminating jobs in Germany and outsourcing production, particularly to Eastern European countries where wages are significantly lower." The workforce has dwindled from 12,400 in 2014 to a mere 6,500 today, with insufficient investment in factories. Zorn warns, "If this continues, we'll have no Nestlé plants left in Germany within the next 20 years."
Not all positions are at risk
According to company statements, the Neuss site will close by mid-2026, while the Conow plant will be sold. The 80 employees at Conow are expected to be taken over by the new owner. Around 30 jobs in the production of mustard and mayonnaise tubes will be shifted from Neuss to Lüdinghausen near Münster and offered to affected workers.
Nestlé assures continuous production in Germany. The decisions regarding the two plants were difficult, according to a company spokesperson who explains, "Consumer price sensitivity and rising costs have resulted in falling volumes and overcapacity in the culinary sector in recent years."
The estimated 300 protesters criticize the economically thriving company for pursuing more profits at the expense of jobs. They brandished signs with slogans such as "People Over Profits" and "Inefficient Management Eradicates Jobs."
Nearly 11 billion Swiss francs in profit
Nestlé's global sales dropped by 1.8% to 91.4 billion Swiss francs last year, and profits decreased by 2.9% to 10.9 billion francs. New CEO Laurent Freixe has already announced cost-cutting measures.
In the Neuss social plan negotiations, the company reports promising progress. There will be offers for part-time retirement and a transfer firm to assist employees in reskilling and upskilling.
As Europe experiences a wave of job cuts, Nestlé's workforce reductions may be part of a broader trend due to economic sluggishness and weak demand. Despite Nestlé's overall positive sales performance, the German market appears to be under pressure, which is likely contributing to workforce alterations. The company's "Fuel for Growth" cost savings program, designed to optimize operations and streamline the organizational structure, may involve job cuts or restructuring to enhance efficiency and focus.
- The Nestlé protestors, while emphasizing their disapproval of job cuts, warn that the company's continuous focus on profits over jobs may lead to the disappearance of all Nestlé plants in Germany within the next two decades.
- In an attempt to offset job losses, Nestlé has proposed measures such as part-time retirement options and a transfer firm to aid employees in acquiring new skills, but these measures might not suffice in assuaging the concerns of those in the community who see the company's actions as a neglect of its duty to the workforce and a prioritization of profits over lifestyle, community aid, and local business.
