The layoffs also reachedbarn Nestlé: The company formulated a work plan for the coming year, which will include laying off dozens of employees, investing in innovation and development, and reducing fixed costs.
According to the company, the purpose of the plan is to adapt the company to the new reality and to continue development and growth, this in two main foundations. The first is an accelerated investment in innovation, technology and growth amounting to tens of millions of shekels. The second is maintaining an efficient expense structure, within the framework of which dozens of employees out of the company’s 4,000 employees will be laid off. Most of the laid off are sales people and a small part are staff.
Bassem stated that they intend to implement new technologies and invest in automation and opening new production lines in the Sderot, Yakneam and Kiryat Gat factories, alongside upgrading the existing lines in the factories. In addition, invest in innovation for the needs of developing new categories and products and in alternative energies for energy saving.
Masem Nestlé stated that “Towards the year 2023, we are required to act efficiently and creatively, in order to enable continued growth and face the challenges of the period. The work plan will include accelerated investment in innovation, increasing production capacity, technology and automation to the extent of tens of millions of shekels, alongside maintaining an efficient expense structure and competitive, which includes, among other things, reducing fixed costs, updating procurement agreements, streamlining the company’s headquarters, marketing costs, etc. Also, the company will raise the factory minimum wage to NIS 6,000 per month, thus becoming the first company in Israel to do so.
“As part of the process, only dozens of jobs will become redundant, mainly due to technological changes, and in this case every effort will be made to find employment alternatives within the organization, in full cooperation with the employee representatives and the Histadrut.”
Assem is not the only one to announce in recent times about streamlining procedures and layoffs. At the beginning of the month, Shufersal published its efficiency plan, which is estimated to save about NIS 250 million, including extensive efficiency measures that include layoffs of about 120 employees. Beitan Wines reported immediately afterwards that it implemented an efficiency plan during the third quarter that included layoffs and closing loss-making branches.