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Nestle to reorganize IT operations, could cut 500 jobs

Nestlé SA said May 29 it could reduce up to 500 IT jobs in its Switzerland office as it looks to reorganize parts of its global information technology activities in the coming 18 months.

With the reorganization, the food giant intends to utilize its existing technology hub in Spain and other locations for its IT operations. The company said May 29 that it decided to carry out the reorganization following a review of its global IT setup, adding that it now aims to access wider digital skills.

The food giant's Nespresso unit also plans to establish operational centers in Spain and Portugal to take advantage of existing e-commerce and supply chain hubs. The coffee maker division will also set up a center for boutique operations in Italy and will offer roles in the centers to the 80 employees impacted by the decision.

According to the release, Nestlé will work with its employees through feedback and comments, as well as detailed social plans to lessen the impact of the reorganization. This could include employment within the company, early retirement or outplacement support.

The plans will not affect production sites in Switzerland, the release said, and Nestlé could invest about 300 million Swiss francs in 2018 for production, distribution, real estate and IT infrastructure in its home base.