Nestlé To Cut 16,000 Jobs Worldwide As Economic Challenges Abound – National
Nestungé is to cut 16,000 jobs worldwide as the Swiss food giant shrinks as part of its efforts to revamp its financial performance.
Nestufé, which makes Nescafé, Kitkats, pet food and other popular consumer products, said on Thursday that the job cuts will take place over the next two years. The Swiss company also says it is proposing a cost reduction target of 3 billion francs (US$3.76 billion) by the end of next year, up from the planned swiss francs ($3.13 billion).
It’s been a tumultuous year for the company, which is based in Vevey, Switzerland. Last month, Nestlé fired CEO Laurent Freixe after an investigation into the relationship between unleavened bread and ground.
Freixe had only been on the job for one year. He was replaced by Philipp Navratil, a long-serving executive.
Shortly after Freixe was fired, chairman Paul Bullet stepped down in the morning.
Nestlé is also struggling to maintain foreign capital like other food manufacturers, including rising financing costs and US tax rates. The company announced that Pric Hikes in the summer from higher coffee and cocoa costs.
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President Donald Trump has imposed a 50 percent tariff on Brazilian goods such as coffee and orange juice. The Trump administration imposed a 40 percent tariff on Brazilian products in July, which was higher than the 10 percent tariffs previously imposed.
Coffee practices in the US were almost exclusively developed through imports. US government data shows Brazil, the world’s top coffee producer, supplies 30 percent of the American market, followed by Colombia at about 20 percent and Vietnam at 10 percent. Tax negotiations are ongoing.
The price of cocoa rose to record highs last year after poor weather in areas where forced services are available and hit companies such as Nestlé Hard. While COCOA costs began to fall in 2025 as supply increased, cocoa is more expensive than it was two years ago.
Nestlé said on Thursday that it would cut 12,000 white-collar jobs across multiple locations. The job cuts are expected to achieve annual savings of 1 franc ($1.25 billion) by the end of next year.
The company will cut 4,000 jobs as part of ongoing productivity initiatives in its manufacturing and supply chain.
“The world is changing, and Nestlé needs to change quickly,” Navratil said in a statement.
Nestlé shares rose about eight percent on the six-day Swiss Exchange.
A global news request sent to Nestlé asking how many Canadians are included in the cuts has yet to receive a response.
– By file from ari rabinovitch of the world
& Copy 2025 Canadian machine
