Danone to cut 900 management and administrative jobsFebruary 19, 2013 - 14:15 AMT PanARMENIAN.Net - French food and drink company Danone has said it will cut 900 jobs after weakness in southern European economies hit sales, BBC News reported. The owner of Activia yogurt and Evian bottled water reported sales of 20.1bn euros ($26.8bn; £17.3bn) in 2012, up 5.4% from a year earlier. But sales in Europe fell 3% following a "severe deterioration" in consumer demand. As a result, Danone has announced a cost-cutting plan. The firm plans to cut about 900 management and administrative positions across 26 European countries. "2013 will be a year of transition, with vigorous development in business in our growth markets and a drive to strengthen operations in Europe," said chairman and chief executive Franck Riboud in a statement. The world's biggest maker of yogurts predicted its profit margins would fall again this year, with a negative trend for demand in Europe and prices of raw materials staying high. Its sales growth in 2012 was at the lower end of its own expectations and behind the 5.9% achieved by its Swiss rival Nestle. The company is heavily exposed to European economies, with about 38% of its sales coming from western Europe. Sales at its Spanish dairy division were particularly weak. The company announced in December that it was preparing a two-year cost-cutting program to save about 200m euros. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Russia: Armenia’s frozen membership weakens CSTO position in Caucasus A Russian envoy said any step that could alienate the CSTO member states from each other is “deeply wrong”. Prosecutors to appeal Armenia ex-President’s acquittal Sargsyan was acquitted on Friday, May 31 more than four years after going on trial on corruption charges. Armenia: 28 protesters arrested after clash with police The Investigative Committee of Armenia has announced the arrest of 28 participants of an opposition demonstration. International cybercrime ringleaders arrested in Armenia, Ukraine Europol, Europe's crime agency, has arrested four ringleaders of several cybercrime networks that used botnets. |