The agro-food group Danone has announced 2,000 job cuts worldwide, including nearly 400 in France. These job cuts are part of a €1 billion savings plan designed to regain the confidence of shareholders while the share has lost more than a quarter of its value by 2020.
The group is suffering the effects of the COVID-19 crisis due to restaurant closures and lockdowns, which are driving down its sales of bottled water, especially the smaller, more lucrative formats. But the objective, in this group which pursues the 'dual economic and social project' of its founder, Antoine Riboud, is also to improve its profitability, to reach an operating margin of between 15 and 20%.
The majority of the savings, that is €700 million, will come from a reduction in general and administrative expenses, with a reduction in employees numbers that will mainly affect head offices. Danone will move from a global product category organisation to a country organisation.
A former reorganisation was recorded in 2013, with 236 job cuts.