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Nestlé to cut 90 jobs at Swiss facility amid strategic realignment for iconic food brands

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Nestlé is poised to reduce its workforce by 90 positions at a Swiss facility as part of its strategic realignment towards the production of two specific food brands.

The Swiss multinational is allocating a sum of SFr6.5 million ($7.2 million) for the revitalization of its Wangen facility, situated in the canton of Schwyz. This facility currently specializes in the production of fresh dough.

At the Swiss facility, Nestlé will exclusively manufacture two brands: Buitoni, renowned for its Italian pasta, and Leisi, a producer of pastries and dough.

In the upcoming year, nearly half of the workforce at the Wangen factory will be reduced. Nestlé conveyed this information to employees on the morning of October 13th, as confirmed by a spokesperson from the company.

“We constantly review our activities and market requirements. The market conditions have changed and volumes abroad have decreased. We have therefore decided to concentrate on our core business with our own brands in the future,” the spokesperson said.

“We have personally informed our employees this morning about our plans and a four-week consultation period with the personnel commission has now begun. Our plans foresee a two-phased approach and it is expected that the process will be finalised at the end of Q2.”

The spokesperson further mentioned that Wangen facility manufactures various brands, including products for foodservices, catering to both the Swiss market and international exports.

Nestlé maintains nine production facilities in Switzerland and markets a wide array of products under approximately 40 diverse brands catering to both consumers and their pets.

During the initial half of the current financial year, Nestlé recorded a 1.6% increase in sales, reaching SFr46.3 billion on a reported basis. The closely monitored underlying trading operating margin (UTOP) saw a 20 basis point increase, reaching 17.1%, and grew by 30 points in constant currency. In terms of trading operating profit, there was a 2.9% rise to SFr7.9 billion.

Net income experienced a 7.7% upturn, reaching SFr5.6 billion.

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