Nestle has announced plans to cut around 16,000 jobs worldwide over the next two years as part of a major cost-cutting drive. The Swiss consumer goods giant said it needs to embrace automation and improve efficiency to secure its future position in the industry.
The job reductions will include approximately 12,000 white-collar professionals across various business functions and geographical locations. A further 4,000 cuts are planned across manufacturing and supply chain operations.
The workforce reductions are expected to save the company around one billion Swiss francs (£940 million) annually by the end of 2027. Nestle has increased its total cost-savings target to three billion Swiss francs (£2.8 billion), up from a previous target of 2.5 billion Swiss francs (£2.3 billion).
Strategic transformation drive
Chief executive Philipp Navratil said the company must adapt to changing market conditions. "The world is changing, and Nestle needs to change faster," he stated.
Navratil acknowledged the difficult nature of the decisions, saying: "This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency."
The CEO emphasised that the measures would strengthen the company's competitive position. "The actions we are taking will secure Nestle's future as a leader in our industry," he explained.
Company context
Nestle employed approximately 270,000 staff last year and produces household brands including KitKat, Nescafe, and Cheerios. The company said it wants to focus on becoming a more efficient organisation through increased automation of work processes.
Navratil also indicated the company would be "prioritising the opportunities and businesses with the highest potential returns" as part of its strategic review.
Leadership changes
Philipp Navratil recently replaced former boss Laurent Freixe, who was dismissed last month following an investigation into an undisclosed romantic relationship with an employee. The leadership change comes as the company implements its significant restructuring programme.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.