France's Danone to cut up to 2,000 jobs worldwide as pandemic damage control
Moscow/Sputnik: Paris-based multinational food company Danone is set to slash about 2,000 jobs both at its headquarters in the French capital and abroad as part of its recovery strategy following the COVID-19 crisis, the company announced on Monday.
Danone said in s statement that its transformation plan "Local First" seeks to simplify the processes inside the company, including the decision making, in particular, by granting power to local offices worldwide.
"This simplification and evolution in the role of our common functions will translate in reductions of around 1,500 to 2,000 positions in local and global headquarters, with up to 25% of current job positions for our global headquarters," the statement read.
It added that the implementation of the plan will take into account "specific policies" designed by the company to combat the current health crisis.
Another pillar of the company's reshaping strategy includes the advance of digitization and other sources of productivity. Danone expects the plan to return the company to profitable growth in the first half of 2021. In addition, the plan seeks to deliver a billion euros (over $1,187 billion) in savings by 2023, which the company plans to reinvest in its brands and its margins.
Notably, Danone said it targeted its operating margin to return to over 15 percent level by 2022 and achieve "3% to 5% profitable like-for-like revenue growth."
Danone unveiled its ambition to reshape its structure last month following an improvement in sales in the third quarter, after the company has seen its operation affected by the coronavirus crisis.