Nestlé, the world’s largest food company, has announced plans to lay off about 16,000 employees worldwide over the next two years as part of a sweeping cost-reduction and automation initiative aimed at improving efficiency.
The Swiss multinational said the move will enable it to streamline operations through greater automation, digital transformation, and the expansion of shared services. According to the company, around 12,000 white-collar jobs will be affected, with another 4,000 positions cut from manufacturing and supply chain operations—representing nearly 6% of its global workforce.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount,” Chief Executive Officer Philipp Navratil said in a statement on Thursday.
Nestlé noted that automation and AI-driven systems are already being used across its research, marketing, and product development units. The company’s 2024 annual report highlighted how advanced analytics and automation have helped optimize promotions, pricing, and retail displays.
While the firm did not specify which regions would be most affected, analysts predict that administrative and mid-level management roles in North America and Europe may face the biggest impact.
The restructuring comes amid growing economic pressures on multinational firms battling inflation, rising costs, and rapid technological shifts. Similar moves have recently been made by major tech firms Microsoft, which cut 9,000 jobs this year, and Google, which laid off hundreds from its Platforms & Devices division.
Despite the layoffs, Nestlé reported a 4.3% rise in organic sales in Q3 2025 and reaffirmed its commitment to long-term investment. Its shares rose 7.6% on Thursday following the cost-cutting announcement, reflecting investor confidence in the company’s transformation strategy.
