Nestlé plans to move 580 jobs out of Switzerland

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Last week, Nestlé announced plans to cut its Swiss workforce by 580.

The plans involve restructuring its IT department, with a focus on extending its technology hub in Spain. Over the next 18 months, this re-organization could lead to a reduction of up to 500 IT positions in Switzerland, said the company. A source close to Nestlé told Le News that around two thirds of the cuts will occur in Vevey and the remaining third in Lausanne and at the company’s data centre in Bussigny.

In addition, around 1,000 IT contractors and onsite IT vendor staff will be affected.

Nespresso is also part of the shake up as the company plans to establish dedicated operational centers in Spain and Portugal to improve e-commerce and supply chain. These roles will be offered to the 80 staff currently holding them in Switzerland.

Peter Vogt, Group Head of Human Resources and Member of the Nestlé Executive Board said: “Nestlé remains fully committed to its home base in Switzerland. The relationship between Nestlé and Switzerland is mutually beneficial and the company will continue to invest in the country.”

According to the company, the number of Swiss-based Nestlé staff rose from around 6,700 in 2003 to over 10,100 in 2017.

In 2017, the company invested CHF 289 million in Switzerland and aims to invest CHF 300 million during 2018.

At the same time Nestlé’s strategy aims to make structural cost savings in manufacturing, procurement and administrative services, according to its latest annual report. Projects in manufacturing, procurement and general administration are expected to deliver total savings of CHF 2.0 to 2.5 billion by 2020.

A local newspaper report says that Nestlé plans to reduce the company’s sites in Switzerland from 21 to 6. Two sites set to expand are new offices in Vevey and Tour de Peilz, which will welcome 2,000 new staff said the report. Other offices, such as the one at Bellerive in Lausanne, will be vacated.

The City of Lausanne reacted negatively to the recent announcement and has demanded negotiations with the company.

More on this:
Nestlé press release (in English)

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