The job cuts will run across management and administrative positions across 26 countries, and could include marketing. However, it is unclear whether the UK will be impacted.
One quarter of the jobs cuts will be in Danone's native France.
The 900 positions affected amount to 4% of its total European workforce.
Danone said the cuts would help make savings of €200m (£173m) over two years.
The news emerged as Danone reported full-year sales of €20.1bn (£17.3m) in 2012, up 5.2% on the previous year.
Franck Riboud, Danone chief executive, said: "2013 will be a year of transition, with vigorous development in business and a drive to strengthen operations in Europe."
Marketing activity in the year included a fresh attempt to build its sparkling water brand Badoit in the UK, and significant support behind Evian and Volvic, its two flagship water brands.Follow @johnreynolds10