Nestlé SA has begun issuing retrenchment notices to more than 400 employees in South Africa, marking the early stages of a sweeping restructuring effort that will reshape its operations across the continent, according to people familiar with the process.
Sources say that approximately 100 employees have already entered severance discussions. They requested anonymity as the details of the retrenchments remain confidential and consultations are still underway.
The move is part of a broader reorganization of Nestlé’s Africa portfolio, with additional layoffs expected in other regional markets, including East Africa. The restructuring forms a key component of a global overhaul initiated by newly appointed Chief Executive Officer Philipp Navratil.
Under Navratil’s leadership, Nestlé is undertaking one of its most significant corporate transformations in decades. The multinational plans to cut around 16,000 jobs worldwide, roughly 6% of its global workforce, as it concentrates the business around four core divisions and divests operations that are no longer considered strategic.
One major step in this strategy is the agreement to sell its remaining global ice cream business, including well-known brands such as D’Onofrio, Real Dairy, Parlour, and Lafrutta, to Froneri, the joint venture it co‑owns with investment firm PAI Partners. The deal reflects the company’s ambition to exit non‑core categories and streamline its product portfolio.
A Nestlé spokeswoman, responding to questions, said that the scale and structure of workforce reductions would differ from one country to another. She noted that each market is developing its own transformation plan, guided by local business conditions, strategic requirements, and regulatory frameworks.
She added that because formal consultations are ongoing, the company could not yet comment on the final number of jobs to be cut, but despite the workforce reductions, Nestlé emphasized its long-term commitment to the region.
The spokeswoman said in a written statement:
We remain firmly committed to playing our part in the development of the local and Africa’s economy as a whole. We are positive that we are paving the way for a long-term, sustainable future on the continent.
The retrenchments mark a significant moment for Nestlé’s African operations, which are now entering a period of restructuring that mirrors the company’s global reset, leaner operations, a sharper focus on priorities, and a renewed push for long‑term profitability.
