Nestlé to Cut 16,000 Jobs Amid Cost-Cutting Measures

London – Nestlé, the world’s largest food company, announced on Thursday that it will cut around 16,000 jobs globally over the next two years as part of its strategy to reduce costs through automation and improve operational efficiency.

Most of the layoffs, approximately 12,000 jobs, will impact white-collar roles. The company, known for brands like KitKat and Nesquik, is moving toward a more automated future, utilizing shared services to streamline its processes.

In addition to the white-collar cuts, about 4,000 positions in manufacturing and the supply chain will also be eliminated as Nestlé aims to boost productivity. This round of job cuts represents nearly 6% of Nestlé’s total workforce.

New CEO Philipp Navratil emphasized the necessity for change, saying, “The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount.”

The announcement comes as concerns rise about the impact of artificial intelligence on employment in various sectors. The CEO of Anthropic, an AI lab, warned that AI might lead to increased unemployment rates.

Nestlé uses AI in numerous functions, including research and development, and has invested in automation and advanced analytics for promotional activities.

This news follows a tumultuous period for Nestlé, marked by the unexpected dismissal of its prior CEO, Laurent Freixe, in September over a breach of conduct regarding a personal relationship.

In its latest report, Nestlé noted a 4.3% rise in organic sales for the third quarter, maintaining confidence in their long-term investments despite ongoing challenges from the economy and consumer behavior.

Although consumers in the U.S. are currently facing inflation worries, which could be exacerbated by higher tariffs, spending has remained resilient. Following the job-cut announcement, Nestlé’s stock rose significantly, trading 7.6% higher by 7:30 a.m. ET on Thursday.