The world’s largest food company, Nestle 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.
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.
On 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 last week Nestlé’s stock was trading 7.6% higher following the announcement.
Reporting by Sherifat Oyediran