Beiersdorf looks to save €90m a year with final stage of restructure
1,000 jobs could go
Beiersdorf has launched the final phase of a major restructuring that could see 1,000 jobs cut out of a total workforce of 18,000 worldwide. The improvements from restructuring are expected to achieve savings of €90m a year from 2014 as well as assisting competitiveness and increasing margins.
Total one-off costs of the operation – designated Focus on SkinCare: Closer to Markets – are estimated at about €265m. This total includes €140m of write-offs in the restructuring of the operation in China which will start this year.
The main focus of the strategy will be on streamlining company structure with a redefinition of responsibilities between regions and HQ and the various subsidiaries. The HQ in Hamburg will be reorganised with changes in the regions being the responsibility of the regional subsidiaries.
Beiersdorf is seeking to recover competitiveness in the face of strong competition from other major groups, notably L'Oréal. Third quarter net profits fell 25% this year while sales were slightly down at €1.4bn.