Nestle likely to cut jobs in Zambia as part of operation restructure

Swiss food and drink company Nestlé is reportedly planning to reorganise its operations in Zambia.

Bloomberg reported that the move is part of the company’s strategy to ensure its continued presence in the African market.

The Swiss firm’s restructuring plan could lead to job cuts in the region.

In an emailed response to Bloomberg, a Nestle spokesman stated: “We are not able to confirm how the new structure will look and how many employees will be impacted.”

The Swiss firm further added that it intends to remain active in the eastern and southern Africa market.

Last year, Nestle announced the closure of its Equatorial Africa headquarters in Nairobi, Kenya, as the company incurred heavy costs to maintain that unit.

In December last year, the firm announced its plans to close two facilities in Germany, as well as reduce its workforce at two other locations, impacting a total of 360 jobs.

Reuters reported that the decision to close two facilities was in response to the lower demand. The Swiss firm was looking to move its production operations to another site.

At that time Nestle stated: “This gives us a reliable framework with which to set up our industrial structures in a very dynamic and rapidly changing environment.”

Similarly, the Swiss firm closed its plant in Germany that was engaged in the production of coffee substitute Caro, as well as roasted cereals and put approximately 100 jobs at risk at the facility.

In January, Nestle announced its plans to close its Timisoara facility in western Romania by the end of May, impacting around 390 jobs.

Last week, Nestlé joined a project launched by the Ellen MacArthur Foundation to develop a circular economy solution for the existing food system.