Nestlé SA has begun issuing retrenchment notices to more than 400 employees in South Africa, initiating a significant restructuring of its operations in the region. The job cuts are part of a broader global overhaul aimed at reorganizing the company around four core divisions, according to people familiar with the matter.
At least 100 employees have already entered into severance negotiations, with further layoffs anticipated not only in South Africa but also across Nestlé’s East African businesses. The restructuring, spearheaded by newly appointed Chief Executive Officer Philipp Navratil, will notice approximately 16,000 jobs – roughly 6% of the company’s global workforce – eliminated as Nestlé divests from non-core brands and businesses.
The company has agreed to sell its remaining ice cream operations, encompassing brands such as D’Onofrio, Real Dairy, Parlour, and Lafrutta, to Froneri, its existing joint venture with PAI Partners. This move is part of a wider effort to streamline operations and focus on key product areas.
A Nestlé spokeswoman stated that transformation plans are being developed at a local level, tailored to each market’s specific business needs and in compliance with local regulations. The company declined to comment on the precise number of jobs that may be cut while consultations with employees are ongoing. “We remain firmly committed to playing our part in the development of the local and Africa’s economy as a whole,” the spokeswoman said. “We are positive that we are paving the way for a long-term, sustainable future on the continent.”
The retrenchments mark another instance of an international corporation scaling back its presence in South Africa. The restructuring follows a similar pattern of workforce reductions announced by Nestlé globally, as the company adapts to changing market conditions and prioritizes core business areas.
