Nestlé has announced it will be cutting 80 jobs at its Krupka factory in the Czech Republic, citing a slowdown in sales of plant-based meat alternatives among European consumers.
The cuts represent one-fifth of the plant’s workforce, though Nestlé hopes to help many workers reintegrate into the local labour market. The facility, which produces the company’s Garden Gourmet products, will remain operational; however, output will be reduced from September.
Nestlé says it remains committed to its plant-based ranges, but must adjust to lower-than-expected demand following the pandemic. The company notes that market conditions such as inflation and increased competition have contributed to declining sales.
Responding to market challenges
Nestlé has previously indicated that its plant-based brands are facing challenging market conditions; in 2023, the company announced that its Wunda plant-based milk, Garden Gourmet meat alternatives, and Middle Eastern-inspired Mezeast products would all stop retailing at UK supermarkets. In 2024, Wunda was discontinued altogether after struggling to keep up with competitors such as Alpro and Oatly.
However, Nestlé continues to invest in the plant-based sector, opening a new facility in Serbia last year to manufacture its Garden Gourmet products.
“The European market for plant-based alternatives is growing more slowly than we anticipated,” Nestlé spokesperson Tereza Procházková told Expats.cz. “We have tried to maintain production and jobs while waiting for market conditions to improve, but this has not happened so far.”
