Nestlé, the world’s largest food and beverage company, has announced plans to eliminate 16,000 jobs worldwide over the next two years.
The decision, unveiled by newly appointed CEO Philipp Navratil, is part of a broader strategy to accelerate transformation and improve operational efficiency amid changing market dynamics.
Nestlé Workforce Reduction: Scope and Structure
The job cuts represent approximately 6% of Nestlé’s global workforce, which currently stands at around 277,000 employees.
Of the 16,000 roles being eliminated, 12,000 are white-collar positions, primarily in corporate and administrative functions.
The remaining 4,000 roles are tied to production and supply chain operations, where restructuring efforts had already begun prior to this announcement.
Philipp emphasized that the company will implement the reductions with “respect and transparency,” acknowledging the difficulty of the decision while underscoring its necessity for long-term competitiveness.
Strategic Rationale and Cost-Saving Targets
Nestlé’s leadership has framed the layoffs as part of a larger cost-saving initiative.
The company has raised its savings target to 3 billion Swiss francs (approximately $3.7 billion) by the end of 2027, up from a previous goal of 2.5 billion francs.
The white-collar job cuts alone are expected to save 1 billion Swiss francs, double the amount initially projected.
Philipp, who assumed the CEO role in September 2025, stated, “The world is changing, and Nestlé needs to change faster.”
He added that the company must move quickly to accelerate growth momentum and adapt to evolving consumer expectations and technological shifts.
Nestlé Business Performance and Market Context
The announcement came alongside the release of Nestlé’s nine-month financial results.
The company reported a 1.9% decline in sales, totaling 65.9 billion Swiss francs ($83 billion).
Third-quarter sales were stronger than expected, driven by price increases and volume growth.
However, the company continues to face pressure from inflation, supply chain disruptions, and shifting consumer behavior.
Nestlé owns more than 2,000 brands, including Nespresso, KitKat, Perrier, and Purina.
The company is now focusing on streamlining operations and investing in automation.
It is also reallocating resources to high-growth areas such as health science, pet care, and plant-based products.
Automation and Organizational Restructuring
Nestlé’s increased investment in automation and digital transformation partly drives the rationale behind the job cuts.
The company aims to simplify its organizational structure and reduce duplication across global markets.
Automation is expected to enhance productivity across operations. However, it also contributes to headcount reduction, especially in administrative and support roles.
Philipp noted that driving “RIG-led growth” (real internal growth) is the company’s top priority. He added that Nestlé is stepping up investments to support this goal.
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