NESTLE ANNOUNCES LAYOFFS 64 EMPLOYEES TO BE CUT IN GLENDALE HEAD OFFICE.
Byline: Jason Z. Cohen cohen
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GLENDALE - Nestle USA said Friday it plans to lay off 1 percent of its U.S. work force, including 64 employees at its Glendale headquarters.
Spokeswoman Kimberly Constant said the company decided Wednesday to lay off 225 of its 19,500 employees. The decision was not precipitated by any specific event, Constant said.
Nestle employs approximately 1,800 people at its Glendale headquarters.
Joe Weller, Nestle USA's chairman and chief executive officer, said the layoffs are a competitive move.
``Our goal is always to deliver the highest quality products at the most competitive price. This work force reduction will enable us to remain a top player in this highly competitive industry,'' Weller said.
The layoffs mark Nestle's second major strategic move in recent weeks. In early December, the company announced it would sell three of its coffee lines - Hills Bros BROS Brothers
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The sale was billed as a move by Nestle to focus on its Nescafe brand, which is receiving a new image accompanied by a major marketing campaign.
Nestle USA, with headquarters in Glendale, is a division of the Swiss company Nestle S.A., the world's largest food company.
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Glendale Mayor Ginger Bremberg said the city won't likely suffer any ill effects, but that several families will be disrupted because of the layoffs.
``I'm sorry that that's happening, but a great many companies are doing reorganization right now. It's a business decision,'' said Bremberg, who called Nestle a wonderful corporate citizen.
The company provides candy for the city's parks programs, Bremberg said.
Business trouble is hitting other parts of the food industry as well, said Doug Christopher, an analyst with Los Angeles-based Crowell Weedon & Co.
Christopher, who follows competitor Hershey Foods Inc., said that company has had troubles with a new computer system that has caused it to miss shipments for every major holiday since Halloween.