Cornel Krummenacher
June 16 (Reuters) – Swiss food and drinks company Nestle SA is
cutting 15 percent 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
Nestlé’s equatorial Africa region, told the Financial Times in an
interview. (goo.gl/a55Wy8)
He also said Nestle would be lucky to
reach annual 10 percent growth in Africa in future years, and with the
cuts, the company hoped to break even next year.
Nestle Nigeria reported a 51 percent fall in pretax profit to 3.48 billion naira ($17.51 million) in the first quarter.
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