Nestlé, the world’s largest packaged food company, will eliminate 16,000 jobs as part of a major cost-cutting initiative, new CEO Philipp Navratil has announced.
The job cuts represent 5.8% of Nestlé’s approximately 277,000 employees worldwide. The company has also raised its cost-saving target to 3 billion Swiss francs (€3.77 billion) by the end of 2027, up from the previous target of 2.5 billion francs.
Navratil cited several factors driving the restructuring, including inflationary pressures and economic challenges affecting the company’s operations globally. Although the majority of Nestlé’s U.S. sales are produced locally, the company faces headwinds from U.S. import tariffs, which represent a setback to its operations.
The job reductions will likely affect multiple regions and business divisions across Nestlé’s extensive portfolio, which includes brands spanning confectionery, pet food, beverages, nutrition and other food categories.
The announcement reflects broader challenges facing the food manufacturing sector, including rising input costs, labor expenses and supply chain pressures. Large multinational food companies have increasingly turned to restructuring and automation to maintain profitability amid these challenges.
Nestlé’s announcement comes as the company competes in increasingly competitive global markets while managing inflationary pressures and evolving consumer preferences toward healthier and more sustainable products.
The company is expected to provide more details about the timing and regional distribution of the job losses in coming weeks.