Beiersdorf AG, the maker of Nivea skin creams, said it plans to cut as many as 1,000 jobs over the next three years as it seeks to reduce expenses by 90 million euros ($121 million) annually by 2014.
The job reductions will be spread across the world, including as many as 230 in Germany, the Hamburg-based company said today. Beiersdorf’s global workforce will shrink to about 17,000, spokesman Thomas Schonen said in a telephone interview.
Beiersdorf, which cut profit forecasts twice at the end of last year, is seeking to address shrinking margins and stagnant sales at its consumer unit. The German company is reducing its beauty-products lineup to focus on skin care.
The cost-cutting measures will produce annual savings of about 25 million euros in 2012, 75 million euros in 2013 and 90 million euros in 2014, Schonen said. Beiersdorf anticipates one- time costs of about 265 million euros, most of which will be incurred this year. These include 140 million euros for a reduction in the value of a hair-care business in China.
Beiersdorf rose as much as 4 percent in Frankfurt trading and was up 3.5 percent at 42.54 euros at 4:28 p.m. Maxingvest AG, the Herz family investment vehicle that controls the Tchibo coffee retailer, owns a majority of the shares.
To contact the editor responsible for this story: Celeste Perri at email@example.com