The French food group Danone is going to cut costs and cut jobs in order to increase the profitability under pressure from the crisis. In addition, the organisational structure of the company is reorganised, with much greater focus on geographical locations.
The maker of dairy and yoghurt products, baby foods and mineral waters, including Evian, is going to cut up to 2000 jobs, including in France. The annual cost should be reduced by EUR 1 billion in 2023, through administrative expenditure and cheaper purchasing. Danone expects the measures to cost around EUR 1.4 billion.
Danone is faced with increasing competition, but also with a weaker demand for mineral water because the crisis means that people are much more at home and therefore fewer bottles of water are sold in, for example, the catering industry. CEO Emmanuel Faber says that because of the uncertain market conditions, a safe profit margin should be built up for the company.