•Nestle plans 16,000 job cuts over two years as part of cost-reduction and automation strategy.
• White-collar employees hardest hit, manufacturing and supply chain roles also affected.
• Company emphasises digital transformation and AI adoption to streamline operations.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
Nestlé, the world’s largest food company, has announced plans to reduce its global workforce by 16,000 employees over the next two years, signalling a major push toward automation and operational efficiency.
According to the company, approximately 12,000 of the layoffs will affect white-collar professionals, while 4,000 will come from manufacturing and supply chain roles. Overall, the cuts account for nearly 6% of Nestlé’s global workforce.
Automation and Digital Transformation at the Forefront
CEO Philipp Navratil said in a statement on Thursday:
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount.”
The company explained that automation and digital tools will help streamline operations, improve productivity, and redirect resources toward growth and innovation. Nestlé has already integrated AI into research and development, marketing, and product promotion, optimising everything from promotional campaigns to in-store displays.
While the company did not specify which regions would be most affected, industry analysts suggest administrative and mid-level management roles in North America and Europe could bear the largest impact.
Industry-Wide Trend of Workforce Restructuring
Nestlé’s announcement mirrors recent moves by other multinational corporations adjusting to inflation, rising costs, and technological disruption.
Microsoft cut 9,000 employees globally in its second major layoff of the year, roughly 4% of its workforce.
READ ALSO: Midnight Inferno: Many Feared Dead in Ogun Tanker Fire Explosion
Google laid off hundreds in its Platforms & Devices division, following voluntary exit programs.
These actions reflect a broader trend of flattening hierarchies, merging overlapping units, and enhancing operational agility.
Financial Outlook
Despite the job cuts, Nestlé reported a 4.3% increase in organic sales in the third quarter of 2025. The company remains committed to medium-term investments but flagged ongoing risks from macroeconomic uncertainties and cautious consumer behaviour, particularly in North America, its largest market.
Following the announcement, Nestlé shares rose 7.6%, reflecting investor approval of the cost-cutting and digital transformation plan.
