Danone Will Lay Off 900 Employees In Europe

The world's largest yogurt producer, Danone, said it would immediately lay off 900 employees in Europe. Danone's move comes after the company's earnings in 2012 decreased quite as weak consumption in the Southern European region.

In the official statement of the company, Danone's trading operating margin fell 0.5 percentage points to 14.2% in 2012. Meanwhile, net income from operating income runs in the same period rose to 1.82 billion euros, or U.S. $ 2.4 billion from the previous year worth 1.75 billion euros. While the estimate of 28 analysts surveyed by Bloomberg pegged the figure 1.81 billion euros.

One cause of the decline in margin is decline by Danone dairy products demand due to the debt crisis in the Blue Continent. Conditions that cause consumers to choose products with more affordable price.

"The year 2013 will be a year of transition. This year is the year to restore our activities to be back strong and profitable until 2014," said Chief Executive Officer of Danone's Franck Riboud.