Nestlé, the world’s largest food and beverage company, has announced plans to cut approximately 16,000 jobs worldwide over the next two years as part of an ambitious automation and cost-optimization strategy aimed at improving efficiency and competitiveness.
The Swiss multinational revealed that the restructuring will see around 12,000 white-collar roles and 4,000 manufacturing and supply chain positions eliminated — representing nearly 6% of its global workforce. The move underscores the company’s broader push toward digital transformation, automation, and shared service integration.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount,” said Philipp Navratil, Nestlé’s Chief Executive Officer, in a statement on Thursday.
Automation and AI Integration
Nestlé has increasingly embraced AI and automation technologies across its operations — from research and development to marketing and retail execution. According to its 2024 annual report, the company leverages advanced analytics and automation tools to enhance promotional strategies, optimize discounts, and improve in-store visibility.
The new automation-focused restructuring is expected to streamline internal processes, boost productivity, and redirect resources toward emerging growth areas, particularly in digital commerce and health-focused product lines.
While the company has not specified which regions will bear the brunt of the layoffs, analysts anticipate that administrative and mid-management roles in Europe and North America will likely be most affected.
Industry-Wide Restructuring Trend
Nestlé’s announcement follows a growing trend among global corporations pursuing leaner, AI-driven organizational models to stay competitive in a rapidly evolving market.
In recent months, Microsoft initiated a second wave of job cuts affecting about 9,000 employees, or 4% of its workforce, as part of efforts to simplify operations and remove management layers. Similarly, Google laid off hundreds of staff from its Platforms & Devices division, impacting teams working on Android, Chrome, and Pixel devices, in a bid to reduce overlap and enhance agility.
These industry shifts highlight how automation and generative AI are increasingly reshaping workforce structures and operational priorities across major global firms.
Financial Performance and Market Reaction
Despite the restructuring, Nestlé reported a 4.3% increase in organic sales in the third quarter of 2025, driven by strong performance across key categories. However, the company warned of macroeconomic uncertainties, including inflation and fluctuating consumer demand.
North America remains Nestlé’s largest market, where inflation and tariffs have pressured household spending, though demand has remained relatively stable.
Investors responded positively to the cost-cutting announcement — with Nestlé’s stock surging 7.6% on Thursday following the news. The move is seen as a step toward maintaining profitability and future readiness in a more automated, data-driven global economy.
