Nestle Says $1 Billion Restructuring Plan to Weigh on Profit
- Nescafe maker doubles forecast for restructuring costs in 2017
- Company forecasts operating margin to narrow as it cuts jobs
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Nestle SA, the world’s biggest food company, almost doubled its forecast for restructuring costs as Chief Executive Officer Mark Schneider tries to revive growth after the weakest nine-month sales since at least 1999.
Nestle, which is cutting jobs at its skin-health unit and shifting headquarters in the U.S. and France, may spend close to 1 billion Swiss francs ($1 billion) on business reorganization this year, Chief Financial Officer Francois-Xavier Roger said on a call with reporters Thursday. That means the full-year trading operating margin will decline by 40 basis points to 60 basis points in constant currency.