Global Food Giant Implements Workforce Reduction Strategy
Nestlé, the world’s largest food company, will eliminate approximately 16,000 positions globally over the next two years, according to reports from Fortune. The workforce reduction represents about 6% of the company’s total employees and includes 12,000 white-collar positions along with 4,000 manufacturing and supply-chain roles.
Sources indicate that newly appointed CEO Philipp Navratil is spearheading the restructuring effort as part of his strategy to transform Nestlé’s operations. “We are transforming how we work,” Navratil stated in a LinkedIn post that accompanied the company’s earnings report and layoff announcement. “We are evolving and will simplify our organization and automate our processes.”
Automation Drives Operational Changes
The company’s statement specifically highlighted automation as a key factor in the workforce reduction, with analysts suggesting that many white-collar roles will be automated as the firm targets improved operational efficiency. A Nestlé spokesperson told Fortune that “this initiative is focused on transforming our ways of working, streamlining the organization and processes, and leveraging digitalization and automation.”
This move toward increased automation aligns with broader industry trends, as companies across sectors are implementing similar strategies. Recent reports from industry monitors show how artificial intelligence and automation are transforming business operations, while technology analysts have documented automation’s expansion beyond traditional sectors.
Financial Performance and Market Challenges
According to the company’s official sales report, Nestlé’s sales fell 1.9% to approximately $82.8 billion for the first nine months of 2025 compared to the same period last year. However, organic sales, which exclude currency and acquisition effects, reportedly rose 3.3% during the same period, suggesting underlying business improvement despite currency headwinds.
The restructuring comes as consumer packaged goods companies face significant challenges, including shifting consumer preferences away from processed foods and pressure from recent price increases. Industry reports suggest that changing food and beverage trends are forcing companies to adapt their strategies and supply chain operations.
Leadership Transition and Strategic Direction
Navratil assumed the role of chief executive officer last month following the dismissal of former CEO Laurent Frexie, whose tenure lasted just one year before an undisclosed romantic relationship with a subordinate was revealed. The new CEO now faces the challenge of navigating the company through a period of transformation.
“The world is changing, and Nestlé needs to change faster,” Navratil stated in the company disclosure. “This will include making hard but necessary decisions to reduce headcount over the next two years… Along with other measures, we are working to substantially reduce our costs.”
Global Implementation and Industry Context
The workforce reduction will affect employees globally, though company representatives noted that “it will affect each market in a different way, and each market will prepare its own plan.” The spokesperson added that the company is “not in a position to share more details at this stage” regarding specific regional impacts.
The restructuring at Nestlé reflects broader economic trends, with industry analysts noting similar workforce adjustments across multiple sectors. The move away from traditional white-collar worker roles toward automated processes appears to be accelerating, as documented by business researchers and technology observers across various industries.
As Nestlé implements this substantial workforce reduction, market watchers will be monitoring how the company balances cost-cutting measures with maintaining product quality and market position in an increasingly competitive global food industry.
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