Danone Spain has confirmed this Monday that it will apply a transformation plan of its operating model that will mean the departure of 153 workers from the multinational, which represents almost 8% of its workforce, to promote the digitization and modernization of the company with the objective to regain market share, increase sales and return to profitable and sustainable growth.
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The French group Danone obtained a net profit of 1,956 million euros in 2020, which represents an increase of 1.4% compared to last year.
Specifically, the multinational has informed Europa Press that this plan will be carried out in a “transparent manner through dialogue and consensus” with the workers’ representatives, therefore it plans to open the negotiation period in the coming days. with the employees in its three subsidiaries (Essential Dairy & Plant Based, Waters and Specialized Nutrition) to reach “consensual and mutually agreed solutions” for the change in the operating model.
This transformation plan, called ‘Local First’, was announced by the group last November and will be applied in all the countries in which it operates, affecting a total of 1,850 workers worldwide.
The multinational has specified that this initiative seeks to achieve a more competitive cost structure and that a large part of the adjustment will be reinvested in boosting its brands, seeking new growth opportunities and promoting a digital analysis platform for ‘Big Data’ to detect new trends in consumption.
With this transformation plan, Danone responds to the “stagnation of the sector in the last decade” that has caused a significant reduction in sales and the company’s market share in that period. Turnover in 2020 fell 6.6% to 23,620 million euros. In accordance with the plan presented, the multinational company intends to modernize and streamline its operating model based on three strategic pillars, the first one through organizational change.
Another of the pillars of the program is to streamline decision-making processes to “gain speed and efficiency” within the organization, which means giving the countries greater power and responsibility in local operations to have greater operational efficiency. with lower costs and higher profitability to drive profitable and sustainable growth.
The third consists of the creation of a digital analysis platform for ‘Big Data’ to detect consumption trends in real time and thus gain agility in responding to the demand of local markets.
Danone has advanced that it foresees “important economic investments” for the launch of the new digital platform and the reinforcement of the ‘e-commerce’, in addition to material and human resources with the incorporation of new professional profiles and the adaptation of others.