Nestlé to Cut 16,000 Jobs Globally in Major Cost Overhaul

In a sweeping move to restore profitability, Swiss food giant Nestlé has announced plans to cut 16,000 jobs worldwide over the next two years. The company, known for brands like Nescafé, KitKat, and Purina, said the job cuts are part of a broader cost-cutting strategy aimed at saving 3 billion Swiss francs ($3.76 billion) by the end of next year.

The restructuring comes after a turbulent period marked by leadership shake-ups and external economic pressures. Nestlé confirmed that 12,000 white-collar roles will be eliminated across multiple markets, while 4,000 additional positions will be trimmed from manufacturing and supply chain operations. The company expects these cuts to save around 1 billion francs annually once fully implemented.

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Leadership Shake-Up Amid Uncertainty

Nestlé’s internal turmoil intensified last month when the board dismissed CEO Laurent Freixe following an investigation into an undisclosed relationship with a subordinate. Freixe, who had served just one year as chief executive, was replaced by Philipp Navratil, a veteran Nestlé executive. Soon after, long-time Chairman Paul Bulcke also stepped down ahead of schedule, signaling a major leadership transition within the company’s upper ranks.

Global Pressures and Rising Costs

Like many global food manufacturers, Nestlé continues to battle rising commodity costs and international trade challenges. Tariffs imposed by the U.S. on Brazilian goods—ranging from coffee to orange juice—have pushed up input prices for many of Nestlé’s key products.

Coffee imports, largely sourced from Brazil, Colombia, and Vietnam, now face added strain amid ongoing tariff negotiations. Meanwhile, cocoa prices soared to record highs last year due to poor weather conditions in key producing regions. Although prices have eased in 2025, they remain significantly higher than two years ago, keeping pressure on confectionery margins.

A Push for Transformation

In a statement accompanying the announcement, CEO Philipp Navratil emphasized the need for rapid adaptation, noting, “The world is changing, and Nestlé needs to change faster.”

Despite the sweeping job reductions, Nestlé shares jumped nearly 8% on the SIX Swiss Exchange following the announcement, as investors welcomed the company’s decisive move to streamline operations and bolster profitability.

Nestlé Canada said it was too early to confirm how local operations would be affected, adding that each market will determine its own restructuring plan in the coming months.

As the world’s largest food company undergoes this major overhaul, the next two years will be critical in determining whether Nestlé’s aggressive cost-cutting strategy can deliver the financial turnaround it’s aiming for.