Nestle is set to reduce its workforce by 16,000 employees worldwide in a bid to enhance its financial performance. The Swiss food conglomerate, known for popular brands like Nescafe, KitKats, and pet foods, announced on Thursday that the job cuts will be implemented over the next two years. Additionally, the company revealed plans to increase targeted cost reductions to 3 billion Swiss francs ($5.32 billion Cdn) by the end of the following year, up from the initially proposed 2.5 billion Swiss francs ($4.43 billion Cdn).
Responding to inquiries about the impact of the cuts on its Canadian operations, Nestle Canada’s Senior Vice President, Catherine O’Brien, stated that the global job reduction initiative will affect various markets and functions over the next two years. She highlighted that each market will devise its own plan, and specific numerical details are not available at this stage.
Nestle specified that 12,000 of the job cuts will target white-collar positions across multiple locations, with expected annual savings of 1 billion Swiss francs ($1.77 billion Cdn) by the end of the subsequent year. The company will also eliminate 4,000 jobs as part of ongoing efficiency measures in its manufacturing and supply chain operations.
CEO Philipp Navratil emphasized the need for Nestle to adapt swiftly to a changing world, stating, “The world is changing, and Nestle needs to change faster.” The company, headquartered in Vevey, Switzerland, has faced a tumultuous period, including the recent dismissal of CEO Laurent Freixe following an investigation into an undisclosed relationship with a subordinate. Freixe’s replacement, Navratil, a longstanding Nestle executive, assumed the role after the abrupt departure of chairman Paul Bulcke.
Nestle is grappling with various challenges in the external environment, such as escalating commodity costs and U.S. tariffs. To counter increased coffee and cocoa expenses, the company announced price adjustments during the summer. Notably, U.S. President Donald Trump’s imposition of tariffs on Brazilian goods like coffee and orange juice has impacted the industry, with ongoing tariff negotiations.
Cocoa prices surged to record levels last year due to adverse weather conditions in key cultivation regions, leading to supply constraints that affected companies like Nestle. Although cocoa costs began to decline in 2025 with improved supply, they remain significantly higher than in previous years.
Following the announcement, Nestle’s shares surged by nearly eight percent on the SIX Swiss Exchange. In the U.S., where the company’s stock trades over the counter, a similar increase was observed at the opening of trading on Thursday.
