EMCC European Monitoring Centre on Change

Danone

Company/Organisation:
Danone

Geographic Location

Country: World
Location of affected unit(s): France

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.5 - Manufacture of dairy products
Number Employed: 100000
Group: Sofina

Employment Effects

Announcement Date: 23-11-2020
Planned Job Reductions min: 1500
Planned Job Reductions max: 2000
Type of Restructuring: Internal restructuring
Employment Effect Start: 23-11-2020

Additional Information

On 23 November 2020, French food group Danone announced that it will cut about between 1,500 and 2,000 jobs worldwide. The dismissals will affect mainly administrative and management positions. So far, the company has announced a dismissal programme in France, where it will cut up to one in four workers.

The restructuring programme is primarily due to the COVID-19 pandemic. Indeed, the company revealed that its sales in the third quarter of 2020 fell 9.3% year-on-year to €5.82 billion.

The reorganisation includes, among others, a €1 billion savings plan, the reduction of 1,500 to 2,000 office staff (for a saving of €700 million by 2023) and a research plan for new sources of industrial productivity. A proportion of the savings will be used to finance new growth opportunities. The plan's goal is also to see the operating margin recover to 15% from 2022.

The CEO of the group explained that the plan has become imperative with COVID-19, which has modified and accelerated the food revolution, and that the goal is to give back the priority to local production.

Danone, the world's largest yogurt maker, sells its products in 120 markets. Currently, the group employs about 100,000 people worldwide.

Sources: