US EditionNestlé, the World’s Largest Food Company, Is Cutting 16,000 Jobs Due Partly to Automation
Nestlé will cut 16,000 jobs, or 6% of its global workforce, to reduce costs and automate roles amid shifting consumer preferences and falling sales, CEO Philipp Navratil said.
- On Thursday, Nestlé announced it will lay off 16,000 employees worldwide, cutting about 6% of its global workforce of 277,000 over the next two years.
- Facing weaker sales, Nestlé is raising its savings target to CHF 3.0 billion by end of 2027 as Philipp Navratil, Chief Executive Officer , commits to faster change and headcount cuts.
- About 12,000 roles will be white-collar jobs and roughly 4,000 manufacturing and supply-chain positions, with some office roles automated under automation and digitalisation initiatives.
- Investors reacted as Nestlé's stock jumped early on Thursday, and a Nestlé spokesperson said reductions will be implemented with respect and transparency while local markets prepare plans.
- Amid rising AI concerns, the planned layoffs add to turmoil after the abrupt removal of Laurent Freixe, former CEO, while Nestlé already employs AI and automation in R&D and promotions.
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A reduction of 16 000 jobs: this is equivalent to a break in the taboo at Nestlé. What does the new head of the company Philipp Navratil want?
Nestlé announced the dismissal of 16,000 people in the next two years, equivalent to about 6% of its global workforce.The company reported that this measure seeks to achieve savings of 3 billion Swiss francs (equivalent to $3,7889 million) by the end of the year 2027.The announcement provoked an immediate reaction on the stock market.The shares of the firm rose 9.3%, closing the day at 83.21 Swiss francs (about $106 per title).Of the total cuts,…
At the Swiss global corporation, it goes to the committed. New CEO decrees mass redundancies and maximum return for shareholders.
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