The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Food And Beverage Manufacture Of Food Products 10 - Manufacture of food products
300 jobs Number of planned job losses
Announcement Date
23 November 2020
Employment effect (start)
13 September 2021
Foreseen end date
31 December 2022
Description
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, 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.
Updated, 01/04/2021: Instead of the 2,000 job cuts, the new management has revised the reorganisation and announced 1,850 job cuts worldwide, including 458 in France. The plan is expected to be implemented gradually in 2021 and 2022.
Updated, 09/09/2021:After months of negotiations, Danone's French employee representatives, with the exception of the CGT which is in the minority in the group, have signed an agreement with the management. It is much less drastic than initially planned and should result in about 300 net job cuts, instead of 458.
Eurofound (2020), Danone, Internal restructuring in France, factsheet number 102696, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/102696.
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