Supply Chain Management / Warehouse Management / Warehouse Robots

Nestle's U.S. unit to slice 4,000 jobs in delivery change

By Bloomberg, for IndustryWeek

May 08, 2019

Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.

The company said Tuesday that it’s shutting down its direct-to-store delivery network for products like DiGiorno and Skinny Cow beginning in the third quarter. The change, announced at a shareholder event in Arlington, Virginia, means the elimination of an operation that now includes 230 facilities, 1,400 trucks and 2,000 different routes.

The U.S. unit employs about 48,000 people, according to a spokeswoman, so the cuts represent about 8.3% of the workforce. The job cuts bring one-time costs of about $500 million, the company said in slides presented to investors.

As part of the transition, Nestle USA will close eight company-owned frozen distribution centers. The change should be complete by the second quarter of 2020.

Read the full story, "Nestle's US Unit Will Slice 4,000 Jobs in Delivery Change," on www.industryweek.com.

Get breaking industry news delivered right to your inbox.
Sign up for the daily Plant Services Smart Minute newsletter.