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Swiss chocolate giant Barry Callebaut may cut 2,500 jobs

Swiss chocolate maker Barry Callebaut said Monday that it may cut almost one in five jobs over the next 18 months as part of efforts to cut costs.

Published: 26 February 2024 17:09 CET

A selection of chocolate.

A selection of chocolate. Photo: Image by Carina from Pixabay

Chief executive Peter Feld told the Handelsblatt newspaper that the company may slash 2,500 jobs, or 18 percent of its workforce.

“It is about reducing complexity and eliminating duplication and inefficient structures,” Feld told the German daily.

The company confirmed the potential job cuts in a statement to AFP.

“Discussions with employee representatives have just begun,” the statement said.

Barry Callebaut, which has its headquarters in Zurich, supplies cocoa and other chocolate products to food industry giants including Hershey, Nestle and Unilever.

The group has been undergoing reorganisation since Feld became chief executive in April, as the firm battled to move on from a salmonella outbreak at a Belgian facility while facing inflationary headwinds.

In September, it launched a strategic investment program of 500 million Swiss francs ($568 million) in innovation, services and digitalisation.

“Our goal is to make Barry Callebaut fit for the future and take it to the next level of growth,” Monday’s statement said.

“It also includes measures to increase efficiency within the company. Overall, the program aims to reduce costs by 15 percent, which could affect up to 2,500 positions worldwide over the next 18 months, primarily by eliminating duplication and inefficiencies,” it said.

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How much can you expect to be paid in certain professions in Switzerland?

Thanks to a strong economy and the ability to weather many of the economic storms of the past few years, there is an increased focus on the alpine nation as a destination for job seekers.

A new report released by financial services company Conotoxia provides a fresh look at the average monthly salaries for Switzerland’s most significant job sectors, and the monthly costs that new arrivals can expect.

A commanding advantage

The good news is that Swiss workers enjoy a commanding salary advantage over many of their neighbours.

Conotoxia, which based its report on figures from Switzerland’s Federal Statistics Office states: “Switzerland is renowned for its high labour standards and competitive salaries. The average annual salary is 78,000 CHF or around €79,500.”

In comparison, the most recent figures from Eurostat, dating from 2022, place the average annual salary across the European Union at €33,500.

Wages in Switzerland do vary depending on the region and the specific position.

READ MORE: Which job sectors in Switzerland employ the most foreign workers?

Medical and IT are the strongest earners

Switzerland’s booming pharmaceutical and life sciences sectors – most visible in the country’s ‘Health Valley’ stretching between Geneva and Bern – have led to doctors and those with direct medical experience expecting to earn Switzerland’s highest monthly salaries.

Doctors, for example, can expect to earn an average of 8,000 CHF to 15,000 CHF monthly, whereas pharmacists can expect a monthly paycheque of between 7,000 CHF and 10,000 CHF.

With IT providing the backbone to many of Switzerland’s other industries—particularly banking—it is no surprise that programmers, developers, and system administrators can expect a sizeable monthly salary.

READ MORE: Which Swiss companies have the biggest gaps between high and low earners?

On average, IT professionals should earn between 7,000 CHF and 12,000 CHF.

Of course, those in the banking sector can also expect an excellent monthly salary. Conotoxia lists roles such as financial analyst earning between 7,000 CHF and 11,000 monthly – with salaries trending towards the higher end in Zurich, the country’s financial capital.

Other professions listed were as follows: electricians (5,200 CHF), pharmacists (7 to 10,000 CHF) hotel managers (5 to 8,000 CHF) University lecturers (6 to 10,000 CHF) sales managers (6,500 to 9,500 CHF) logistics specialists (5,500 to 8,000 CHF) and mechanical engineers (6,500 to 9,000 CHF)

A higher cost of living

Higher salaries, however, result in a higher cost of living for those coming to Switzerland from abroad.

Rents in Switzerland are among the highest in Europe and can range between 1,000 CHF for a studio apartment and 3,000 CHF for a larger apartment, especially in larger cities such as Geneva and Zurich, which are classed as among the world’s most expensive cities to live in.

READ MORE: Why are Zurich and Geneva among the world’s most expensive cities?

While essential utilities are not the most expensive in Europe, they are undoubtedly high.

According to the report, those living in Switzerland can expect to pay between up to 250 CHF a month for power, gas and water.

However, according to the quality of life database Numbeo, this is still well below the most expensive European country, Austria, where the average monthly cost of utilities is €335.69, and Germany, at €321.45.

The report also found that the average monthly cost of groceries was between 600 and 800 CHF, depending on the time of year.

READ MORE Can a family in Switzerland live well on a median salary?

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