Nestlé, the world’s largest food company, has announced plans to eliminate approximately 16,000 positions globally over the next two years as part of a major cost-cutting and automation initiative. The company stated that most of the layoffs, around 12,000, will affect white-collar professionals as it seeks to streamline operations and enhance efficiency through technology-driven processes. An additional 4,000 jobs will be reduced within manufacturing and supply chain divisions to further boost productivity. The cuts represent nearly six percent of Nestlé’s global workforce and are part of a broader effort to restructure operations for long-term competitiveness.
According to Nestlé’s new Chief Executive Officer, Philipp Navratil, the decision reflects the company’s need to adapt more swiftly to global shifts in technology and business models. In a statement, Navratil said that Nestlé must “change faster” to remain agile and competitive, acknowledging that these measures involve “hard but necessary decisions to reduce headcount.” The company emphasized that automation, shared services, and advanced analytics will play a significant role in its restructuring plan. The growing influence of artificial intelligence across industries has intensified discussions on job security, as more companies adopt AI to improve efficiency and cut costs.
Nestlé has already integrated AI into several of its business operations, including research and development, marketing analytics, and retail promotion management. The company’s latest annual report noted that automation and data analytics are being used in functions such as promotional activities, discount management, and in-store display optimization. While these technologies improve accuracy and reduce operational delays, they also contribute to a shrinking need for traditional administrative and support roles. Nestlé’s move reflects a broader global trend in which corporations are increasingly relying on AI systems to handle tasks previously managed by human employees.
The announcement comes amid ongoing leadership changes within the Swiss multinational. Earlier in September, former CEO Laurent Freixe was sacked for failing to disclose a romantic relationship with a subordinate, which violated Nestlé’s internal code of business conduct. Despite the internal disruptions, Nestlé reported a 4.3 percent increase in organic sales during the third quarter, indicating steady underlying growth. The company reaffirmed its commitment to medium-term investments while remaining cautious about the macroeconomic environment and consumer sentiment. North America remains Nestlé’s largest market, where consumers are expressing concern about inflation and potential economic impacts of rising tariffs, though spending levels have stayed stable. Following the announcement, Nestlé’s stock rose by 7.6 percent early on Thursday, signaling investor confidence in the company’s restructuring strategy and long-term vision.
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