Nespresso axes 200 UK jobs amid store shutdowns

The coffee giant reduced its headcount from 716 to 499 during the latest financial year, according to accounts filed with Companies House.

Nespresso said the move was designed to streamline operations and “adapt to changing shopping preferences for immersive brand experiences.”

Despite the closures, the UK arm of the business saw turnover rise slightly to £340.7m, up from £338.6m the previous year, while pre-tax profit increased from £14m to £15m.

This marks the 12th consecutive year of growth in pre-tax profit, with UK turnover alone rising from £306.1m to £309.9m. Sales in other regions fell slightly, from £32.5m to £30.8m.

The company paid a dividend of £10.3m to its parent in 2024, marginally down from £11m the previous year.

A board statement highlighted strong sales of Nespresso’s Vertuo system to consumers, alongside growth in its business-to-business division.

It also noted the brand’s entry into the on-the-go coffee market with a new Nespresso Bar near Liverpool Street station in London.

“The external environment remains extremely challenging,” the statement added.

“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.”