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Food Entrepreneur Boss Reveals the Real Cause of Nestle Layoffs

General Chair of the Indonesian Food and Beverage Entrepreneurs Association (GAPMMI) Adhi S Lukman revealed the reasons behind the layoffs (PHK) carried out by PT Nestlé Indonesia. He also denied that the layoffs had anything to do with the domino effect of the Israel-Hamas war.

“I have confirmed with Nestle. Actually, these layoffs are due to costs continuing to increase quite high, so they are making efforts to cut production costs,” Adhi told CNBC Indonesia, Wednesday (15/11/2023).

One of them, continued Adhi, was that Nestle then carried out automation. According to him, this step is a demand from the industry that must be taken to reduce production costs.

“And, in my opinion, what Nestle is doing is good. On the one hand, they will divert their workforce to fill the expansion needs here. However, they are also offering a golden shake hand (offering early retirement). And that is already good,” said Adhi .

Adhi also reminded that currently, the processing industry, including the food and beverage industry, is facing various global challenges. Starting from climate change, to increasing geopolitical tensions.

He also hopes that the government will focus on maintaining conditions in the country that remain good and stable so that industrial growth is maintained, thus having a positive impact on the national economy.

Previously it was reported that PT Nestle Indonesia laid off its employees in Kejayan, East Java as of October 31 2023.

“Nestlé has been operating in Indonesia since 1971. For more than 50 years, we have created mutual benefits for consumers, employees, business partners and the planet. Currently, the company is adapting its business so that it becomes more agile and efficient and can continue to provide opportunities for can continue to grow in the future,” said Nestle Management in a written statement quoted on Wednesday (15/11/2023).

Source: CNBC Indonesia