London (October 19, 2025)— Global food giant Nestlé announced Thursday that it will cut around 16,000 jobs worldwide over the next two years as part of its strategy to reduce costs and boost efficiency through automation and restructuring.
According to the Swiss-based company, about 12,000 white-collar positions will be affected as Nestlé streamlines operations and expands the use of shared services and automated systems. The remaining 4,000 job losses will come from its manufacturing and supply chain divisions, as the firm looks to enhance productivity across its global network.
“These are difficult but necessary steps,” said newly appointed CEO Philipp Navratil. “The world is changing, and Nestlé needs to change faster. To stay competitive, we must make tough decisions, including reducing headcount.”
The move comes amid growing concerns about the impact of artificial intelligence (AI) and automation on employment across industries. Nestlé has been increasingly integrating AI into its operations, including research, product development, and marketing analytics, according to its latest annual report.
The restructuring follows a turbulent period for the company, which recently dismissed its former CEO Laurent Freixe in September after he failed to disclose a relationship with a subordinate, a violation of Nestlé’s business conduct code.
Despite the upcoming layoffs, Nestlé reported a 4.3% increase in organic sales during the third quarter and reaffirmed its plan to continue investing for long-term growth, even as global economic uncertainties persist.
Nestlé’s largest market remains North America, where inflation concerns continue to weigh on consumer sentiment. Still, spending levels in the United States have so far remained steady.
Following the announcement, Nestlé’s shares surged by 7.6% in early Thursday trading, reflecting investor optimism about the company’s cost-cutting measures and growth outlook.