Nestlé, the world’s largest food and beverage company, has announced plans to lay off about 16,000 employees worldwide over the next two years as part of a sweeping cost-cutting initiative.
The company said the restructuring aims to save up to 3 billion Swiss francs (about $3.7 billion) by 2027, as it seeks to streamline operations and adapt to changing global market conditions.
According to a statement released on Thursday, the layoffs will affect both factory and office roles across multiple regions, though Nestlé emphasized that measures would be taken to support affected staff.
The company said the decision was driven by rising production costs, inflationary pressures, and the need to simplify its global operations to remain competitive.
Nestlé, which employs more than 270,000 people globally, noted that the cost-cutting plan would focus on “increasing efficiency, digital transformation, and portfolio optimization,” while maintaining its commitment to product quality and innovation.
Analysts say the move reflects broader challenges facing multinational consumer goods companies amid slowing demand, fluctuating commodity prices, and higher logistics costs.
Nestlé’s Chief Executive Officer, Mark Schneider, said the restructuring would “position the company for long-term sustainable growth” and ensure that “resources are directed toward innovation, consumer value, and emerging market expansion.”
Further details about the specific regions and departments affected are expected to be announced in the coming months.
