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Nestle's U.S. Unit Will Slice 4,000 Jobs in Delivery Change

  • Will stop shipping frozen pizza, ice cream direct to stores
  • Staff cuts will bring one-time costs of about $500 million
Photographer: Blend Images/Getty Images
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Nestle SA’s U.S. unit will dismiss about 4,000 workers as it stops delivering frozen pizza and ice cream directly to stores and transitions to a warehouse model that’s becoming an industry standard for Big Food companies looking to trim costs.

The company said Tuesday that it’s shutting down its direct-to-store delivery network for products like DiGiorno and Skinny Cow beginning in the third quarter. The change, announced at a shareholder event in Arlington, Virginia, means the elimination of an operation that now includes 230 facilities, 1,400 trucks and 2,000 different routes.