Nestlé to Cut 16,000 Jobs in Major Cost-Reduction Drive

Nestlé, the world’s largest food and beverage company, announced plans to eliminate about 16,000 jobs globally over the next two years as part of a major restructuring effort aimed at saving 3 billion Swiss francs ($3.7 billion) by 2027.

The cuts, which include around 12,000 white-collar roles, are part of what the company calls a “necessary restructuring” to boost efficiency through automation and shared services.

New CEO Philipp Navratil, who took charge last month, said the changes were essential for Nestlé to adapt to shifting global markets. The move expands on an earlier plan to cut 2.5 billion francs in costs.

The restructuring follows leadership turmoil after former CEO Laurent Freixe was dismissed for violating company policy, and chairman Paul Bulcke stepped down. Investors welcomed the new plan, sending Nestlé’s shares up over 8% in Zurich trading.

Nestlé, which employs about 277,000 people worldwide and owns brands like Nespresso, KitKat, and Purina, said the initiative will help reallocate resources toward more profitable units. Despite challenges including rising input costs, weak demand in China, and U.S. tariffs, the company reported a 4.3% sales increase in the third quarter and reaffirmed its 2025 growth outlook.

The cuts represent one of the largest workforce reductions in Nestlé’s recent history.