Danone shares rise as firm to cut 900 jobs

<p>Shares in Danone have climbed as the company announces it will be axing 900 management jobs.</p>

Shares in Danone have climbed on the Paris Stock Exchange this morning (February 19th) lifting the French index, as the company announces it will be axing 900 jobs in Europe.

The French food and drink company said it came to this decision as it grapples with weakness in the southern European economies hitting sales hard.

It reported sales increased to €20.1 billion (£17.3 billion) in 2012, which is a 5.4 per cent rise year on year, but sales for the continent slumped by three per cent as a result of a "severe deterioration" in consumer demand.

In a bid to make savings, the firm plans to cut 900 management and administrative positions across 26 European nations.

Chief executive and chairman Franck Riboud stated: "2013 will be a year of transition, with vigorous development in business in our growth markets and a drive to strengthen operations in Europe."

At 09:50 GMT, Danone shares rose by five per cent to €52.72 per unit, while the Cac 40 rose to 3697.7 points.

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