A COFFEE giant has axed over 200 jobs after closing 11 stores across the UK last year.
Nespresso slashed its UK workforce from 716 to 499 during the latest financial year, new accounts filed with Companies House show.
Despite the job cuts and store closures, annual turnover at the coffee chain’s UK arm – based in York – still edged up from £338.6m to £340.7m, while pre-tax profit rose from £14m to £15m.
This marks the 12th year in a row Nespresso’s pre-tax profits have grown – with turnover climbing every year since records began at Companies House.
The Swiss firm said was the cuts were part of a restructuring plan to streamline operations and “adapt to changing shopping preferences for immersive brand experiences”.
In a board statement, bosses stressed the successes of Nespresso’s Vertuo system and growth in its business-to-business division.
They also mentioned the brand’s move into the on-the-go coffee market – with a new Nespresso Bar opening near Liverpool Street station in London in March last year.
Nespresso’s concerns about ‘indirect taxes’
But bosses warned the “external environment” remains “extremely challenging”.
They said: “Inflationary pressures, increased costs, the impacts of climate change and a range of supply chain complexities and geopolitical uncertainties will continue to put pressure on the company.
“Increasing commodity costs and aspects such as rising indirect taxes including extended producer responsibility costs will be key challenges for the whole industry.
“The company prides itself on being flexible and adaptable to the external context in order to continue providing high quality and good value products to the consumer.”
It comes after Nespresso recently announced plans to open a new 1,173-square-foot coffee boutique in Edinburgh’s busy St James Quarter.
The unit, located on the third level of the shopping centre, will feature a coffee bar offering tastings of its blends and new flavours.
Nespresso was founded in 1986 by the Swiss food and drink company Nestlé.
The news comes as other big brands also make cuts.
Levi’s axes over 200 jobs
An iconic fashion brand with 71 stores in the UK recently axed 200 jobs.
American label Levi’s, founded in 1853, reduced staff at its Northampton office from 1,857 to 1,630 in the year to November 30, 2024.
Yet like Nespresso, the US fashion label still posted stronger results.
Pre-tax profit jumped from £7.7m to £9.5m, while sales climbed from £89m to £96.8m.
Levi’s said its five-year plan will focus on expanding its womenswear and tops ranges.
The brand also plans to plough more money into premium denim and flexible production.
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