Nestle to axe 16,000 jobs in cost-cutting drive
Philipp Navratil, Nestle’s new chief executive, said: 'The world is changing, and Nestle needs to change faster'
Nestle has unveiled plans to cut around 16,000 jobs around the world over the next two years, as it turns to automation to help reduce costs.
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The newly-appointed boss of the consumer goods giant said it needed to “change faster” and secure its future “as a leader in our industry”.
The reductions would include around 12,000 “white-collar professionals” across business functions and geographies.
This was expected to save the company around one billion Swiss francs (£940 million) each year by the end of 2027.
Read more: Nestle sees lower customer demand after hiking coffee and chocolate prices
It was also targeting a further 4,000 job cuts across its manufacturing and supply chain.
Nestle, which makes household food brands such as KitKat, Nescafe, and Cheerios, had about 270,000 staff last year.
The Swiss firm said it wanted to focus on being a more efficient organisation, including automating more of its work processes.
Its total cost-savings target, which incorporates the workforce cuts, has risen to three billion Swiss francs (£2.8 billion), up from a previous 2.5 billion Swiss francs (£2.3 billion).
Philipp Navratil, Nestle’s new chief executive, said: “The world is changing, and Nestle needs to change faster.
“This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.
“The actions we are taking will secure Nestle’s future as a leader in our industry.
“Collectively, they will enable us to improve our overall performance and deliver shareholder value.”
Mr Navratil also said the company would be “prioritising the opportunities and businesses with the highest potential returns”.
The chief executive replaced former boss Laurent Freixe who was dismissed last month after an investigation into an undisclosed romantic relationship with an employee.