Nestle SA, the Swiss transnational food and drink company, has announced plans to close the headquarters of its Equatorial Africa unit in Nairobi, Kenya by the end of July as part of its strategy to restructure its business in Sub-Saharan Africa.

Nestle said the Nairobi office, which employs over 100 people has been weighed down by high operation costs over the past decade gave the size of the business, reported Bloomberg.

The re-organization at the global food producer may see layoffs in Kenya as it plans to redistribute the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg.

The company said it will expand the Southern African Region (ZAR) to include the Horn of Africa, Southern, Eastern and Island clusters of EAR to form an enlarged region to be headquartered in Johannesburg.

The new region will be renamed the Eastern and Southern African Region (ESAR).

“Our team in EAR has done a tremendous job, but after trying for nearly ten years we can no longer sustain the cost of the regional head office with the size of the business there.

“So, we plan to close the office at the end of July, redistributing the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg,” said Nestle in a statement.

Despite of the changes in the continent, Nestle said the positions of those who work in the country/cluster offices across EAR are not affected by this closure of the regional head office.

In addition, the changes will not affect customers, trade, and wholesale partners, and suppliers said the company.

In 2015, the company’s move to retrench 46 employees was stopped by court claiming the firm discriminated against them.

The retrenchment of workers by the consumer goods manufacturer was embarked on after the announcement was by then chief executive Paul Bulcke in 2014 in a strive to improve margins through cost-cutting and investment in innovation.

This comes after a similar move in the home market, Switzerland where Nestle revealed plans to 500 computer-service jobs as Chief Executive Officer Mark Schneider aims to boost profitability.

With the re-organization, the Central West Africa Region (CWAR) will become a key market for the Nestle Group, effective August 1 2018.

Angola and the Democratic Republic of Congo, currently part of the Equatorial Africa Region (EAR), will also join Central West Africa Region.

The company said it intends to accelerate its digital transformation and to respond more quickly to fast-paced technological changes.


SOURCE: https://brandspurng.com/nestle-to-close-nairobi-office-as-it-restructures-business-in-sub-saharan-africa/

Okay..
I hope you don't lay off workers. Times are hard already abeg

Btw I really like ipCraft Aje song.. nice one man

They should close their business in Naija as well. Na their dem dey save our looted funds. Cut all ties with us

they are moving their hq from UK too.. make Dem Sha no shut down operations in naija oooo.... that one na wahala...people go lose jobs ehn

Hmm

Are they indirectly saying they are not making enough sales in Kenya and environs?
That's what population helps us to keep in Nigeria until one herdsman took over the control of the government

Sarang:
Okay..
I hope you don't lay off workers. Times are hard already abeg

Btw I really like ipCraft Aje song.. nice one man

How can they close the office and not lay off workers?

Well they don't have market share in Kenya as they have in Nigeria.

otunbabadok:
They should close their business in Naija as well. Na their dem dey save our looted funds. Cut all ties with us

more reason why u deserve to earn 30k salary from politicians as online defenders

Even multinationals self dey downsize hmm. it portends a bad omen for those reposing their financial future on this guy's, without any rock solid exist strategy. For all those in nestle Nigeria be wise to start planning financially for your exit cos at anytime, layoffs can come. it's news like this that makes me stay put in my private engagement. God help Us.

Restructuring everywhere, nothing as good as having your own biz, even if all you make is just 50k per month, either you are selling kulikuli or akara, what is your own is your own, God help us.

soo make we fry beans.?

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08060364621

African governments are irresponsible.

Nestle wants to move its office from Kenya to South Africa and still keep operations, income and profit. The Kenyan government yet has no response ?
We are to believe that Kenya, a country with population excess of 30 million cannot support a 100 man operation.
The same thing multinationals do in Nigeria.
What a shame.

Jobs recruitment in Ibadan. Any interested fellow should send His or her CV to matrintab@gmail.com. There is going to be an interview if you are luckily shortlisted. Best of luck.

ohhh

teamsynergy:
they are moving their hq from UK too.. make Dem Sha no shut down operations in naija oooo.... that one na wahala...people go lose jobs ehn

Then no born thrm well. 9ja be their largest African market if not sub saharan sef.
Check out, almost all beverages and cereals we have in 9ja na nestle

The re-organization at the global food producer may see layoffs in Kenya as it plans to redistribute the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg.



Imagine Nestle making Accra a priority over Lagos mainly because of unfavorable business climate

Even Almighty Lagos and Nigeria is not in the Mix?

IamaNigerianGuy:
African governments are irresponsible.

Nestle wants to move its office from Kenya to South Africa and still keep operations, income and profit. The Kenyan government yet has no response ?
We are to believe that Kenya, a country with population excess of 30 million cannot support a 100 man operation.
The same thing multinationals do in Nigeria.
What a shame.

Eh! This happens everywhere, and has nothing to do with "African governments".

So what should the Kenyan government do? While on that, mention a government anywhere that did it (what you suggest) and the outcome? What you seem to ask should be thrown to the Senegalese government since Dangote has her HQTR in Nigeria.

Chukazu:
The re-organization at the global food producer may see layoffs in Kenya as it plans to redistribute the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg.



Imagine Nestle making Accra a priority over Lagos mainly because of unfavorable business climate

Even Almighty Lagos and Nigeria is not in the Mix?

They made the move long time ago. See how much Nigeria is losing from taxes when they don't allow industries thrive. It's cheaper for them to produce from Ghana than Nigeria.

what's even wrong with all dis Africa company self, ani recession also reach there

...

Isn't this part of their plans to move all their operations to South Africa? , laying off 100's to boost profitability...
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