People Power: Nestlé Workers Take a Stand Against Job Cuts in Germany
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Demonstration against Nestlé's budget-reduction initiative - Demonstrations escalate over Nestlé's cost reduction strategy
The food behemoth, Nestlé, finds itself in the eye of a storm as employees in Germany rally against a wave of future job losses. The show of dissent unfolded outside the Nestlé Germany headquarters in Frankfurt, protesting the impending layoffs at the Neuss near Düsseldorf and Conow in Mecklenburg-Vorpommern locations, amounting to approximately 230 jobs.
union sees this trend as a profitable ploy by the world's largest food manufacturer.
Seasoned Halve
With the ever-present threat of layoffs, the company's messaging campaign, emblazoned with the slogan #OnTheWayToBetter, falls flat, asserts Andreas Zorn, chairman of the works council of Nestlé Germany. Irked by the situation, he remarks, "This has been an ongoing saga. Nestlé has been systematically shedding jobs in Germany for years, and offshoring production to countries where wages are significantly lower." From a workforce of 12,400 employees in Germany back in 2014, only 6,500 remain, with insufficient investments in the plants, continues Zorn. "Should this trajectory persist, we might lose all Nestlé plants in Germany within the next two decades."
Not All Casualties
According to Nestlé's official statements, the site in Neuss will be closed by mid-2026, with the plant in Conow (Mecklenburg-Vorpommern) being sold. Fortunately, the new owner is expected to absorb the 80 employees at Conow. Approximately 30 jobs pertaining to the production of mustard and mayonnaise tubes will be shifted from Neuss to Lüdinghausen near Münster, and offered to the impacted workers.
Nestlé maintained that it will continue producing in Germany, as per a company spokesperson. They further explained that the decisions regarding the two plants were not made lightly. "Increased consumer price sensitivity and escalating costs have resulted in declining volumes and overcapacities in the culinary products sector over the past few years."
More than 300 protesters, however, decried these actions as a greed-driven scheme to rake in higher profits at the expense of their jobs. Their placards read, "People over Profit" and "Mismanagement causing job losses."
announced cost-cutting measures.
Last year, Nestlé's global sales dropped by 1.8 percent to CHF 91.4 billion, while profits saw a 2.9 percent decrease, amounting to CHF 10.9 billion. Despite these drops, the new CEO Laurent Freixe has already announced cost-cutting measures.
Good progress has reportedly been made in the social plan negotiations for Neuss, with the Nestlé spokesperson promising offers for part-time retirement and a transfer company to aid employees in further education and qualification.
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Nestlé recently announced the divestment of two factories in Germany, affecting around 225 jobs, citing reasons of overcapacity amid challenging economic conditions and persistently weak demand for many products in Europe. Critics have voiced concerns that these job cuts and production relocations to countries with lower wages are driven by cost-cutting strategies that may negatively impact local employment and economies. The company's ongoing "Fuel for Growth" initiative, aimed at cost savings and streamlining operations, has led to organizational changes, including harmonizing structures in Europe and enhancing R&D capabilities. These moves are framed by Nestlé as necessary steps to remain competitive and foster growth, but they have sparked criticism from labor groups and affected communities who see these moves as prioritizing profit over workers' lives. Furthermore, there have been reports of union tension, with accusations of Nestlé stalling negotiations and failing to act fairly following union recognition.
- The Nestlé Union Chairman, Andreas Zorn, asserts that the company's job cuts and factory closures in Germany appear to be a profit-motivated strategy by the world's largest food manufacturer, given the ongoing layoffs conflicting with the company's marketing slogan #OnTheWayToBetter.
- The criticism toward Nestlé intensifies as the company's plans to sell a factory in Mecklenburg-Vorpommern and close another in Neuss, amounting to around 225 job losses, are seen as cost-cutting measures that undermine local employment and economies.
- As Nestlé announced divestment of two factories in Germany and cost-cutting measures globally, critics question the company's commitment to its workforce and communities, with the slogan "People over Profit" echoing among the 300 protesters outside the Nestlé Germany headquarters in Frankfurt.
