Swiss multinational food and drink processing conglomerate has announced that it will cut about 16,000 jobs globally over the next two years as part of a sweeping cost-reduction programme aimed at saving 3 billion Swiss francs ($3.7 billion) by 2027.
According to the world’s largest food and beverage company, the job cuts will affect employees worldwide, including 12,000 white-collar positions.
The company added that decision becomes necessary in view of the changing global market dynamics and the need to improve efficiency through automation and shared services.
“The world is changing, and Nestlé needs to change faster,” said Philipp Navratil, who took over as chief executive officer last month following a leadership shakeup. “This will include making hard but necessary decisions.”
Nestlé owns over 2,000 brands including Nespresso, KitKat, Toll House, Perrier, and Purina, and employs approximately 277,000 people globally.
The Switzerland-based conglomerate said its plan would not only reduce costs but also improve its long-term competitiveness by reallocating resources to more profitable business units.
The announcement on Thursday marks an escalation of an earlier plan to cut 2.5 billion francs in spending over the same period.
The company’s latest move follows months of internal turmoil after the abrupt departure of its former CEO, Laurent Freixe, who was dismissed over an undisclosed relationship with a subordinate — a violation of Nestlé’s code of conduct.
The restructuring announcement came alongside Nestlé’s third-quarter financial results, which showed a 4.3 per cent increase in sales, driven largely by price adjustments and steady product demand. Despite global trade headwinds and currency fluctuations, the company maintained its 2025 growth outlook, projecting moderate sales recovery and improved margins.
