Swiss multinational food giant Nestlé has announced plans to eliminate about 16,000 jobs worldwide in the coming two years as it embarks on one of its largest corporate restructurings in decades.
Scope of the Layoffs
The cuts — which represent around 6% of Nestlé’s total workforce — will affect both corporate and manufacturing roles. According to reports, nearly 12,000 office-based positions and 4,000 factory and supply chain jobs will be impacted across multiple regions.
Company’s Explanation
Chief Executive Officer Philipp Navratil, who recently took over leadership of the company, said the move is aimed at boosting efficiency and adapting to global economic realities.
“Nestlé must evolve faster to meet the demands of today’s market,” he stated, emphasizing that the company needs to streamline its operations to remain competitive.
Nestlé has also raised its cost-saving target to 3 billion Swiss francs (about $3.3 billion) by 2027, signaling a strong push toward financial discipline and productivity improvement.
Performance Snapshot
The announcement followed Nestlé’s nine-month financial report, which showed a 1.9% decline in overall sales. However, the company’s organic growth, which excludes foreign exchange fluctuations, rose by 3.3%, thanks to price increases in some of its food and beverage lines.
Broader Implications
The job cuts form part of Nestlé’s broader effort to reshape its business strategy, reduce bureaucracy, and focus on high-growth categories.
While the company insists the restructuring will help improve long-term performance, analysts warn that large-scale layoffs could affect morale and productivity, especially in key markets.
Nestlé, known for popular brands like Nescafé, Milo, and KitKat, has assured investors that its turnaround plan will create a “leaner and more innovative organization” poised for future growth.