ZURICH: Nestle plans to eliminate up to 500 information technology jobs at its Swiss home base as its shifts work to an existing tech hub in Spain and other locations, the food and beverage giant said on Tuesday.
None of the group’s Swiss production sites will be affected by the plan, which is being presented to staff for consultation, it said in a statement.
Its Nespresso coffee business also plans to establish operational centers in Spain and Portugal to benefit from existing Nestle e-commerce and supply chain hubs, and intends to create a center for boutique operations in Italy too.
“It is Nespresso’s intention to offer roles in these centers to all of the 80 employees impacted by the proposed change,” it added. These were in addition to the 500 Swiss IT jobs at risk.
Nestle said it remained committed to its Swiss base, where it employed more than 10,100 people in 2017.
It said this month it planned to combine its scientific research operations into a single Swiss unit in an attempt to speed up development of new products at a time when competition from smaller rivals is intensifying.
Under pressure from activist shareholder Daniel Loeb to increase investor returns, Nestle has been keeping a close eye on costs.
People speak to one another next to a sign of the Nescafe brand at the headquarters of Swiss food giant’s Nestle on October 20, 2016 in Vevey. Sales of Swiss food giant Nestle rose slightly in the first 9 months of 2016, in a “more sluggish” environment, which led the group to strongly revise downwards its expectations for the full 2016 year. According to a statement released October 20, the group recorded a one-percent increase in sales over the first nine months of 2016 to 65,500,000,000 francs ($66 billion).
Nestle plans to cut up to 500 IT jobs in Switzerland
Nestle plans to cut up to 500 IT jobs in Switzerland
- Its Nespresso coffee business also plans to establish operational centers in Spain and Portugal
- Nestle has been keeping a close eye on costs, under pressure from activist shareholder Daniel Loeb to increase investor returns
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
