Dive Brief:
- Swiss paper Schweiz am Sonntag ran an article quoting Nestle's director for Europe, Middle East, and North Africa Luis Cantarell, who said the company is considering raising Swiss employees' work hours, among other changes.
- This consideration is part of a plan to increase the company's productivity in Switzerland following a surprise removal of the 1.20 francs per euro cap by the Swiss National Bank.
- Cantarell said in the article, "We have to talk about everything, about pension plans, unnecessary wastage in production, better machine capacity, but also about working hours, for instance, an increase from 42 hours to 44."
Dive Insight:
The Swiss central bank's removal of the cap on francs has caused an uproar for the Swiss people, businesses, and economy. According to Reuters, the bank's move sent "Swiss stocks plunging, the franc soaring, and [raised] concerns about Switzerland's export-reliant economy."
Nestle isn't the only company shaking up their operations in light of the economic change. Others are "cutting prices, asking suppliers for discounts, paying staff in euros and demanding new hours to protect profits from a soaring franc currency," says Reuters.