It had been nine years since the food giant Danone had completed a restructuring plan.
But the Covid-19 crisis has passed that way: yesterday, Danone CEO Emmanuel Faber announced the elimination of up to 2,000 positions in its headquarters in France and abroad, in order to "simplify" its organization and renew with growth - on average, 25% of head office staff will be affected.
In France, “400 to 500 people” will be concerned, “mainly directors and managers”.
A 30% drop in turnover in the 2nd quarter
As bars and restaurants are closed all over the world, unsurprisingly, it is the “Waters” branch, which represents 18% of Danone's turnover (Evian, Volvic and Salvetat brands, etc.), which is the most struck: "in the 2nd quarter, the turnover of this branch fell by 30%, and by 15% in the 3rd quarter", lists Emmanuel Faber.
A fall linked to the Covid crisis, but also to more structural factors: "the phenomenon of" plastic bashing (
Editor's note: a systematic criticism of plastic)
"is not without consequences on water sales, and consumers more and more tend to rely on tap water, of better quality than before, ”explains Sophie Rousset,“ Key Accounts ”manager at the IRI Institute.
Another explanation for Danone's collapse: if, in France, yogurts, consumed at home are doing well, in the United States, where they are consumed for snacking (at the office, in the car, etc.), they also suffer the negative impact of containment.
And then, we also had to reckon with higher “operating costs”, linked to hygiene measures: respecting the distancing measures on production lines, having two suppliers in case one was affected, etc.
came at a cost.
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Lastly, last factor, which has and will have an impact on sales of breast milk: the drop in births, which we already feel in China, which has reached 10 to 15% in the United States and which "will soon affect Europe with a delay effect ”, believes the CEO of Danone.
The effects of all these causes cumulating, in total, for nine months, "the share price has fallen by more than 30%, which has caused us to lose € 15 billion on a valuation of € 50 billion", he concludes. .
Impressive.
Unions denounce the payment of dividends to shareholders
To restore this “lost value”, the multinational with 100,000 employees will achieve savings of € 1 billion by 2023. Productivity gains will be achieved by further robotizing production lines in more than thirty factories.
And 20% of the references, those corresponding to small productions (such as the aromas of certain waters), will be deleted.
The group hopes to return to a margin of more than 15% from 2022.
"Once again, the human factor is the only adjustment variable", criticizes Laurent Puillen, the national FO coordinator for the Danone group, who recalls that in the spring, in full confinement in France, "Danone had made the choice to distribute € 1.5 billion in dividends to shareholders ”.
"If they had given up part of their dividends, no position would be deleted," he said.
Meetings with elected staff will begin on Monday, at both France and group level, for the implementation of this plan in early 2021. Does the announced robotization ultimately put workers at risk, this time for blue-collar jobs?
“We will remain very vigilant,” warns Laurent Puillen already.