VEVEY, Switzerland — Nestlé announced Thursday that it will cut 16,000 jobs worldwide as part of a sweeping cost-reduction plan aimed at reviving its financial performance.
The Swiss food giant — known for brands such as Nescafé, Purina, and KitKat — said the layoffs will unfold over the next two years, targeting both corporate and operational divisions. The company also raised its cost-cutting target from 2.5 billion to 3 billion Swiss francs ($3.76 billion) by the end of 2026.
“The world is changing, and Nestlé needs to change faster,” said Philipp Navratil, the company’s newly appointed CEO.
U.S. Inflation Rises Amid Tariffs, Consumer Prices, and Federal Reserve Concerns
Leadership Shake-Up Follows CEO and Chairman Exits
The announcement comes after a turbulent year for Nestlé’s leadership. Last month, the company dismissed CEO Laurent Freixe following an internal investigation into an undisclosed relationship with a direct subordinate.
Freixe, who had only served in the role for a year, was replaced by Philipp Navratil, a Nestlé veteran. Shortly after Freixe’s departure, Chairman Paul Bulcke also stepped down ahead of schedule, further fueling investor scrutiny of the company’s governance and strategic direction.
White-Collar Cuts to Deliver Over $1 Billion in Savings
Nestlé said the restructuring will eliminate 12,000 white-collar positions across multiple regions, including its corporate offices and regional subsidiaries.
The company expects these cuts alone to generate 1 billion Swiss francs ($1.25 billion) in annual savings by the end of next year. An additional 4,000 jobs will be trimmed from manufacturing and supply chain operations as part of ongoing productivity initiatives.
The firm’s statement described the layoffs as “a difficult but necessary step” toward a leaner and more agile organization.
Rising Costs and Tariffs Add Pressure
Like many global food manufacturers, Nestlé has faced mounting commodity price pressures and the effects of trade tariffs over the past year.
The company said in July that it offset higher coffee and cocoa costs through selective price increases across key product lines. However, analysts say sustained inflation and weakening consumer demand in several markets continue to strain profitability.
Shares of Nestlé rose nearly 8% on the SIX Swiss Exchange following the announcement, as investors reacted positively to the company’s aggressive cost-saving measures.
