Sector News

Nestle may cut about 70% of French R&D jobs

September 22, 2017
Food & Drink

Nestle S.A. said Thursday that it may cut up to 400 of 550 jobs at its Galderma research and development center in southern France.

The decision comes during a review of its global operations, a company spokesman said. In late August, Nestle said it would cease operations of a skincare-product factory in Switzerland, resulting in the loss of 190 jobs.

Nestle plans to offer about 300 of the 550 employees at the R&D center in Sophia Antipolis a voluntary leave package. Another 100 could be transferred to a new biologics and systemic-treatments center, the spokesman said.

The news was first reported by Reuters.

The Swiss company is under pressure to satisfy investors and has been the target of activist investor Third Point LLC THPT After taking a $3.5 billion stake in Nestle, the hedge fund outlined a number of changes the consumer-goods company could make in June, including improving margins, innovating its core business and selling noncore assets as well as its 23% stake in French cosmetics company L’Oreal SA.

In response, Nestle announced cost-cutting efforts and possible divestitures.

By Max Bernhard

Source: MarketWatch

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