Nestlé reorganizes its global IT activities

29 May 2018 --- Following on from a thorough review of its global information technology (IT) setup, Nestlé has announced its plans to reorganize parts of its IT activities to benefit from its existing technology hub in Spain and other Nestlé locations. With this change, Nestlé intends to accelerate its digital transformation and to respond more quickly to fast-paced technological changes. The company aims to access wider digital skills and to benefit from IT innovation. These measures would also enhance Nestlé's operational effectiveness, according to the company. Over the next 18 months, this re-organization could lead to a reduction of up to 500 IT positions in Switzerland.

In line with these changes, Nespresso is planning to establish dedicated operational centers in Spain and Portugal to benefit from existing Nestlé hubs in the areas of e-commerce and supply chain, and also intends to create a center of excellence for boutique operations in Italy. Nespresso wants to offer roles in these centers to all of the 80 employees impacted by the proposed change.

The plans will now be subject to a period of consultation with the concerned employees, who will be invited to share their comments and feedback. Nestlé will also work with its employees to draw up detailed social plans to mitigate the impact of the reorganization for the people concerned. Assistance may include job offers from within the Nestlé group, early retirement or outplacement support. 

These plans do not affect any of the company's production sites in Switzerland, says Nestlé. 

“We understand that this is a difficult time for our employees. Nestlé is committed to treating everyone with respect and appreciation. We will explore all possible options to provide support and to mitigate the impact on our colleagues,” said Peter Vogt, Group Head of Human Resources and Member of the Nestlé Executive Board. “Nestlé remains fully committed to its home base in Switzerland. The relationship between Nestlé and Switzerland is mutually beneficial and the company will continue to invest in the country,” he continues. 

The number of Nestlé employees in Switzerland rose from around 6700 in 2003 to over 10100 in 2017. The company has made several significant investments in this country over the past years. Nestlé is currently strengthening its research entities in Lausanne, which is the focal point of its global research and development activities. In 2017, Nestlé invested CHF 289 million (US$291 million) in production, distribution, real estate and IT infrastructure in Switzerland with approximately CHF 300 million (US$302 million) being invested in 2018.

Last week, FoodIngredientsFirst reported that Nestlé is strengthening its R&D operations by bringing together its two scientific discovery units, the Nestlé Research Center (NRC) and the Nestlé Institute of Health Sciences (NIHS), to build one “impactful organization.” Nestlé Research will be a combination of what the group describes as “world-renowned research facilities,” with highly complementary capabilities capable of taking the research work of Nestlé to a new level.

The shake-up is said to push the boundaries of research innovation and, more specifically, speed up how the group brings products to market. Nestlé stressed that the reorganization is not a cost-cutting exercise and that there will be no job losses or change to budget. You can read the full story here.