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Nestlé announces job cuts due to overcapacity and market pressures

“This decision was not made lightly; it came after a thorough evaluation of the overall situation,” said Fabrice Johan, Chief Technology Officer. He added, “Our focus now is on taking responsibility for the employees on-site and creating future opportunities for them.”

Nestlé, the global food giant, has announced a major downsizing of its operations in Germany, citing “overcapacity” and increasing “price sensitivity” among consumers as key factors behind the decision. The restructuring will see the closure of its Neuss plant by mid-2026 and the sale of its Conow facility in early 2026, impacting approximately 225 employees.

The Neuss plant, located in North Rhine-Westphalia, currently employs around 145 people and produces Thomy-branded products, including oil, mayonnaise, and mustard. The plant’s closure is part of Nestlé’s broader strategy to optimize production and streamline operations.

“This was a difficult decision, which we made after intensive examination and consideration of the overall situation,” said Fabrice Johan, Chief Technology Officer for Nestlé Germany, as cited by Just Food. “Now it’s time to take responsibility for the employees on-site and create prospects for them.”

Nestlé has outlined plans to relocate production from Neuss to other European sites. Thomy oil production will shift to external partners across Europe, while the manufacturing of glass and plastic bottles will be transferred to other European facilities. Meanwhile, the production of Thomy mayonnaise and mustard in tubes will be moved to Nestlé’s Lüdinghausen site, where 30 new jobs will be created. To support this transition, Nestlé is investing €13 million into modernizing the Lüdinghausen facility and establishing a new production line.

Despite the closure, Nestlé has assured that nearly 80 per cent of Thomy products will continue to be manufactured in Germany.

In addition to the Neuss closure, Nestlé plans to sell its Conow facility in Mecklenburg-Vorpommern, which employs around 80 people. The plant produces various items for Maggi and Garden Gourmet, including Garden Gourmet Vuna, Maggi Liquid Bouillon, and Maggi Texicana Salsa.

According to Reuters, Nestlé is in “intensive negotiations” with an undisclosed German company to sell the facility, along with the existing workforce. Johan described the sale as “necessary” to strengthen Nestlé’s position in Germany and Europe but emphasized that it also “offers the opportunity to preserve the site and the jobs.”

The Neuss and Conow restructuring decisions are part of Nestlé’s broader efforts to optimize its German operations. Earlier in April 2024, the company also announced job reductions at its Frankfurt head office.

“At Nestlé Germany’s Frankfurt site, we are adjusting the course for the future,” a company statement read. “The aim is to better join forces in the market, to take more focused decisions, and to work even better in international structures.”

Nestlé currently operates 17 factories in Germany and employs more than 6,000 people. The company reported net sales of SFr2 billion (€2.08 billion) in 2024, marking a 9.2 per cent decline from the previous year.

Nestlé’s restructuring comes as global food companies face mounting challenges, including inflation, supply chain disruptions, and shifting consumer preferences. As price sensitivity among consumers continues to grow, major corporations are reevaluating their production strategies to remain competitive in a volatile market.

Source:

https://www.peoplematters.in/news/talent-management/nestle-announces-job-cuts-due-to-overcapacity-and-market-pressures-44868

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