All data is delayed
Loading...
See More

Danone to slash 900 jobs

Feb 19 2013 17:54
AFP

Paris - French food industry group Danone said it would cut 900 management and administration jobs across Europe as it reported a flat net profit for 2012 of €1.81bn ($2.4bn).

The cuts represent 10% of managerial staff in Europe with the aim of saving €200m over two years and to boost flagging sales in Europe, the firm said.

Danone chairperson and chief executive Franck Riboud said in a statement that European sales were "under pressure from a severe deterioration in overall consumer demand", falling by 3.0% last year compared to the level in 2011.

"Clearly this situation is not sustainable, and we will overcome it," Riboud said in a statement.

But outside Europe sales grew by an average of 10.0% generating 60% of the group's total sales with Russia now Danone's top market by sales on near equal footing with France.

The current operating margin fell by 0.5% points.

The company said that the job cuts would be achieved by relocation within the company and through voluntary departures. The company said it would a provision €450m in 2013.

The price of shares in the company rose by 5.50% in afternoon trading on a Paris market up by 1.67%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

danone  |  jobs

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Labour’s call for a cap on salary of high earners is?

Previous results · Suggest a vote

Loading...