The more than 4,000 Spanish workers at Nestlé show “concern” about the layoffs and defend the good results in Spain
The announcement of the Swiss multinational Nestle about what will eliminate 16,000 positions of work around the world during the next two years, mainly in administrative areas where the departure of 12,000 people is expected compared to another 4,000 linked to production and supply chain tasks, has generated restlessness among the 4,060 Spanish workers from the food giant. Specifically, from unions such as CSIF, its head of Private Enterprise Pedro Poves highlights that the news has generated “restlessness among the staff” and they have asked the company “to clarify whether the layoffs are going to affect Spain and to what extent.” In any case, Poves rejects the possibility of layoffs in Spain “due to the good economic situation of the company.”
Along these lines, the CSIF representative recognizes that “We have little information at the moment” and assures that, in the Spanish subsidiary, they do not yet have sufficient data. UGT sources also confirmed all these extremes to ’20 minutes’. From Nestlé Spain, to ’20 minutes’ questions about the possible impact of the cuts in Spain, they add that “the announced staff reduction applies to markets and functions globally in the next two years” and they claim that “There is no additional information available to that communicated.”
“We have asked the company to clarify whether the layoffs are going to affect Spain and to what extent,” Pedro Poves (CSIF)
Good results and strong presence
What unions like CSIF do insist on is the good performance of the Swiss giant in Spain. Nestlé Spain closed last year with total sales of 2,582 million euros, 4.1% more than the previous year. Of the total, some 1,038 million came from exports, which grew 7% year-on-year. What it already represents 40% of revenue generated by the company on a national scale. To which are added 76 million euros in investments. Sales generated within the Spanish market increased by 1.7% in the last financial year reaching 1,544 million euros.
Added to all of the above is a long presence in Spain. Nestlé opened its first factory in Spain in the Cantabrian town of La Penilla Cayón in 1905. It currently has a workforce of 4,060 people and has a dozen factories open in Spain, especially in Catalonia (La Penilla, Sevares, Pontecesures, Gijón, Miajadas, Herrera del Duque, Girona, Viladrau, Castellbisbal and Reus). Its headquarters are located in Esplugues de Llobregat (Barcelona). The Swiss company manufactures dairy products, chocolates, breakfast cereals, cereal-based drinks, mineral water, coffee, culinary products, and even pet food in Spain.
Nestlé Spain closed 2024 with total sales of 2,582 million euros, 4.1% more than the previous year. Of the total, some 1,038 million came from exports, which grew 7% year-on-year.
Which directly contrasts with the arguments put forward by the new CEO of Nestlé, Philipp Navratilto justify the cuts announced yesterday. Specifically, the decline in sales suffered by the company during the first nine months of the year is alleged for these adjustments. A loss that they estimate in 1,290 million euros (about 1.2 billion Swiss francs). Navratil speaks of a changing world, which forces the multinational to take harsh measures such as workforce reduction, to achieve savings of 3,231.12 million of euros (about 3,000 million Swiss francs) until 2027. The cut has been widely applauded by the markets: the company’s shares closed yesterday Thursday with a rise of more than 9%, going from 79.99 francs per share to more than 83 francs.
The new CEO of Nestlé barely went into the fine print, but he did anticipate that adjustments will be made in all geographic areas in which the company is present. Despite current macroeconomic risks and uncertainty among consumers, the company maintains its investment commitments in the medium term, the manager added.
The Pablo Isla-Phillipp Navratil tandem has just debuted at the helm of Nestlé, although both have been linked to the food giant for years.
Movements at the top of Nestlé
The decision to cut jobs comes just after a profound change at the top of the food giant, to whose presidency the Spaniard became Pablo Isla (former president of Inditex and Altadis) on October 1, replacing Paul Bulcke. Isla has been a director of Nestlé since 2018 and was appointed vice president a year ago. Bulcke’s replacement was scheduled for next April, but was brought forward following the sudden dismissal last month of former CEO Laurent Freixe, due to an “undeclared romantic relationship with a direct subordinate.” His position has been taken by a man of the house, Philipp Navratilwho was the head of Nespresso since last year, and in whose appointment the now president of the Swiss multinational participated.
