Nestle, the world’s largest food company, has announced plans to cut about 16,000 jobs worldwide over the next two years as part of a sweeping cost-reduction and automation programme.
The Swiss food giant said the decision is aimed at achieving operational efficiency by automating more processes and expanding shared services.
According to the company’s statement, about 12,000 of the layoffs will affect white-collar professionals, while another 4,000 will come from manufacturing and supply chain roles.
Overall, the job reductions represent nearly 6% of Nestlé’s 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.
The company said automation and digital transformation would allow it to streamline operations, improve productivity, and redirect resources into growth areas.
AI and workforce changes
Nestlé already employs AI in several of its operations, including research and development, marketing, and product promotion. The company’s 2024 annual report noted that it uses automation and advanced analytics to optimise promotional campaigns, discounts, and in-store displays.
The firm did not disclose which regions would be most affected, but industry analysts suggest that administrative roles and mid-level management functions in North America and Europe could face the largest impact.
In an environment where rising costs, inflation, and technological change are squeezing profit margins, many large firms have recently moved to reduce headcount or flatten structures.
Microsoft announced a second major wave of layoffs, cutting about 9,000 employees globally. These cuts amount to approximately 4% of its workforce and cover various teams, levels, and geographies. The restructuring is part of Microsoft’s push to streamline operations, reduce management layers, and better position itself in a fast-changing technology environment. Earlier, in May, Microsoft also cut about 6,000 roles, many from product and engineering functions.
Also, Google laid off hundreds of employees in its Platforms & Devices division, affecting teams working on Android, Pixel phones, the Chrome browser, and related engineering units. This followed a voluntary exit program earlier in the year. The cuts are part of an effort to become more agile, merging units to reduce overlap and improve effectiveness.
Financial performance
Nestlé reported that its organic sales, a key measure of underlying performance, rose 4.3% in the third quarter of 2025. The company said it remains committed to medium-term investments, although it warned of ongoing risks from macroeconomic and consumer uncertainties.
Nestlé’s largest market remains North America, where consumers have become more cautious due to inflation and rising tariffs. However, spending has so far remained resilient.
Investors appeared to welcome the cost-cutting plan. On Thursday, Nestlé’s stock was trading 7.6% higher following the announcement.
