Nespresso ‘to lay off hundreds’

Hundreds of jobs at Nestle Austria are at risk, according to a report.

The Kurier revealed today (Fri) that the globally operating foodstuff giant decided to shut the Austrian representation of its Nespresso subsidiary.

The firm confirmed the closure of the facility in Vienna which has orchestrated its operations in Central and Eastern Europe (CEE), according to the newspaper. However, it refused to comment on claims that many of the 265 people currently employed by the espresso machines and capsules manufacturer in the Austrian capital will lose their job. Some of them have already been laid off, according to the Kurier.

Nestle, which has its headquarters in Switzerland, explained it planned to let its offices in CEE work independently. The importance of the representations of Nespresso in Hungary, Poland and other nations in the region will be upgraded by the decision, Nestle said.

There are currently seven Nespresso flagship stores in Austria. The Nestle affiliate is expected to open another one in Innsbruck, the provincial capital of Tyrol, later this year.

Sales of Nespresso machines and capsules have soared in Austria and elsewhere in the past years also thanks to a series of television ads featuring Hollywood stars George Clooney (“From Dusk till Dawn”, “Good Night, and Good Luck”) and John Malkovich (“Dangerous Liaisons”, “In the Line of Fire”). But the hype also triggered the establishment of a string of low-cost competitors. Furthermore, established rivals of Nespresso started producing their own coffee capsules.