Arlington, Virginia-based Nestle USA, the subsidiary of Nestlé S.A., the iconic global nutrition, health and wellness company, has announced another step in its restructuring program.
In this phase, approximately 4,000 employees are at risk from being laid off as the company transforms their product distribution network for its ice cream and pizza operations from its company-owned frozen Direct-Store-Delivery (DSD) network to a warehouse distribution model that is currently used for its frozen meals and snacks distribution. The phased transition will start in October 2019 and completed by April 2020.
According to Steve Presley, the Chairman and CEO of Nestle USA, “This decision came after careful consideration and, while critical to achieve our business goals, it will impact employees in our sales and supply chain teams, and will result in the closure of eight company-owned frozen distribution centers and our frozen inventory transfer points. These employees have worked incredibly hard to serve our customers. Treating them with respect through this process is a top priority for us, and we are committed to doing all we can to provide them information, resources and support.”
Presley further noted, “As we continue to focus on driving long-term profitable growth, leveraging a simpler route to market unlocks resources we can use to fuel our efforts in demand generation, such as product innovation and brand building. Moving to a warehouse model has numerous benefits for us and our retail customers. By taking advantage of the unmatched breadth and depth of our existing frozen warehouse network, our retail customer partners can better leverage their existing networks. This change is a win-win for Nestlé and our customers.”
Look for additional layoffs as Nestle continues to restructure and consolidate its operations.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?