Nestlé cuts 16,000 jobs worldwide in the face of multiple economic challenges – National
Nestlé is cutting 16,000 jobs worldwide as the Swiss food giant cuts costs as part of its efforts to turn around its financial performance.
Nestle, which makes Nescafe, KitKats, pet food and many other well-known consumer brands, said Thursday that the job cuts would take place over the next two years. The Swiss company also said it would increase its cost-cutting targets to 3 billion Swiss francs ($3.76 billion) by the end of next year, from a planned 2.5 billion Swiss francs ($3.13 billion).
It’s been an eventful year for the Vevey, Switzerland-based company. Last month, Nestlé fired its CEO Laurent Freixe after an investigation into an undisclosed relationship with a subordinate.
Freixe had only been on the job for a year. He was replaced by Philipp Navratil, a longtime Nestlé executive.
Shortly after Freixe’s ouster, President Paul Bulcke resigned prematurely.
Nestlé also faces a host of external headwinds, like other food manufacturers, including rising raw material costs and tariffs imposed by the United States. The company announced price increases over the summer to offset rising costs of coffee and cocoa.
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President Donald Trump imposed 50% tariffs on Brazilian products like coffee and orange juice. The Trump administration imposed 40% tariffs on Brazilian goods in July, on top of previously imposed 10% tariffs.
Coffee habits in the United States are almost exclusively fueled by imports. Official U.S. government data shows that Brazil, the world’s largest coffee producer, supplies about 30 percent of the U.S. market, followed by Colombia with about 20 percent and Vietnam with about 10 percent. Pricing negotiations are underway.
The price of cocoa soared to record highs last year after bad weather in the regions where it is grown limited supply and hit companies like Nestlé hard. Although cocoa prices began to fall in 2025 as supply increased, cocoa is much more expensive than just two years ago.
Nestlé announced Thursday that it would cut 12,000 white-collar positions across several sites. The job cuts are expected to deliver annual savings of 1 billion Swiss francs ($1.25 billion) by the end of next year.
The company will cut 4,000 jobs as part of ongoing productivity initiatives across its manufacturing and supply chain.
“The world is changing and Nestlé needs to change faster,” Navratil said in a statement.
Nestlé shares rose almost eight percent on the SIX Swiss Exchange.
A Global News request sent to Nestlé asking how many Canadian jobs are included in the cuts has not yet been answered.
– With a report from Ari Rabinovitch of Global
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