Nestlé moves Romanian production to Hungary, lays off almost 400 staff

Swiss food and drink company Nestlé announced that it will close in its sweets plant in Timișoara, western Romania and move production to Hungary.

“The closing of the Timișoara unit was an extremely difficult decision which we took after detailed analysis. Locally, Nestlé is operating on a rapidly-changing market with new consumption patterns and a labor deficit, in a competitive environment,” said Leszek Wacirz, country manager of Nestlé Romania.

Nestlé bought the Timișoara plant in the year 2000 and had an annual output of some 10,000 tonnes of chocolate and coffee. All 388 employees of the plant will be laid off, but Jackie Avery, human resources manager of Nestlé Romania said the company will assist the people in finding new jobs and gaining new skills and employees will receive compensatory payment based on the time they spent with the company.

Nestlé also said that it will retain its regional cost competence center in Timișoara, but it will be relocated to a the city center. This unit has 30 employees.

Author: Dénes Albert