Jakarta, CNBC Indonesia – French food and beverage company Danone plans to cut 2,000 employees. This was done in order to reorganize its global business, so that it would be more resilient to the post-Covid-19 pandemic situation.
This step, according to Danone, will be able to save operational costs of up to 1 billion euros per year, starting in 2023.
“We have never been this ambitious at Danone,” said Danone CEO Emmanuel Faber Reuters, Tuesday (24/11/2020).
In the next year, Danone predicts that its operating margin will still be gentle. This is affected by the Covid-19 pandemic which has created travel restrictions.
Since the beginning of the year, Danone’s share price has fallen by more than 30%, although there are signs of improvement due to optimism regarding the Covid-19 vaccine.
Regarding layoffs, Danone plans to reduce its 1,500 to 2,000 employees in local offices and several countries in the world. According to sources Reuters, there will be 400-500 employees in France reduced.
The company expects profit growth in semester II-2021, then operating margins will return to pre-pandemic levels in 2022.
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