 "Nestle cuts 15% of its Africa workforce: report")
Swiss food and drinks company Nestle SA is cutting 15% of its workforce in 21 African countries because it says it overestimated the rise of the middle class, the Financial Times reported.
"We thought this would be the next Asia, but we have realised the middle class here in the region is extremely small and it is not really growing," Cornel Krummenacher, chief executive for Nestle's equatorial Africa region, told the Financial Times in an interview.
He also said Nestle would be lucky to reach annual 10% growth in Africa in future years, and with the cuts, the company hoped to break even next year.
Nestle Nigeria reported a 51% fall in pretax profit to 3.48 billion naira ($17.51 million) in the first quarter.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app