Nestlé to cut 16,000 jobs over two years to accelerate automation

Nestlé announced plans on Tuesday to cut about 16,000 jobs worldwide over the next two years as the Swiss food and beverage group accelerates automation and other cost-saving measures. The reductions, which the company said are intended to make its operations more efficient and improve returns, will include roughly 12,000 white-collar roles across business functions and geographies and about 4,000 positions in manufacturing and the supply chain.

The company said the workforce changes are part of a broader push to reduce costs and focus on higher-return businesses. Nestlé estimated the cuts will save about 1 billion Swiss francs annually by the end of 2027 and that its total cost-savings target has risen to roughly 3 billion Swiss francs, up from a previous target of about 2.5 billion. Nestlé reported having about 270,000 employees last year.

Philipp Navratil, who became chief executive last month, framed the move as necessary to respond to a changing business environment. He said, "The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and...