Nestle, the Swiss-based giant that dominates the global packaged food market, announced plans to eliminate 16,000 positions worldwide over the next two years. This move comes as the company pushes for deeper cost reductions amid sluggish sales and internal shakeups.
The layoffs will hit hardest in administrative roles, with 12,000 white-collar jobs on the chopping block across various locations. Another 4,000 cuts are targeted at manufacturing and supply chain operations. Company leaders expect these changes to deliver annual savings of 1 billion Swiss francs—about $1.25 billion—by the end of next year, ramping up to 3 billion francs by 2027.
“The world is changing, and Nestle needs to change faster,” said chief executive Philipp Navratil.
Navratil stepped into the top role last month after the abrupt dismissal of his predecessor, Laurent Freixe, following an investigation into a relationship with a subordinate that broke company rules. Freixe had been in charge for just a year.
Nestle, maker of household names like Nescafe coffee, KitKat chocolate, and Purina pet food, reported a 1.9% drop in sales for the first nine months of the year, totaling 65.9 billion francs. Despite this, organic growth picked up to 4.3% in the third quarter, showing some recovery. The firm is reviewing its water, premium beverage, and supplement businesses to focus on stronger performers like coffee and sweets.
These job reductions represent nearly 6% of Nestle’s 277,000-strong workforce. While the company hasn’t detailed impacts by country, American workers at its U.S. facilities—from factories in states like South Carolina to offices nationwide—could feel the pinch. In an economy where reliable jobs are key to family stability and community strength, such cuts from foreign multinationals raise questions about prioritizing American employment.
Automation plays a big part in the strategy, as Nestle aims to streamline operations and boost efficiency. Investors cheered the news, sending shares up more than 8% in early trading.
For the U.S., where Nestle operates extensively, this serves as a reminder of the vulnerabilities in relying on global corporations for jobs. Supporting homegrown American businesses that keep profits and employment stateside could help shield workers from these kinds of overseas decisions. As the company navigates its turnaround, the broader economic ripple effects on supply chains and consumer prices will be worth watching.
