Nestlé, the world’s largest food company, is set to cut around 16,000 jobs globally over the next two years as it embarks on a major cost-reduction and automation strategy. The Swiss multinational said the move is aimed at improving operational efficiency by introducing more automated systems and scaling up shared services across its business units.
According to the company’s statement, about 12,000 of the affected roles will be white-collar professionals, while another 4,000 positions will be shed across manufacturing and supply chain operations. The cuts represent nearly 6% of Nestlé’s global workforce.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount,” Chief Executive Officer Philipp Navratil said on Thursday.
The company explained that increased investment in automation, artificial intelligence, and digital transformation will allow it to streamline operations, boost productivity, and redirect resources into new growth.
Nestlé already uses AI and data analytics in core areas such as product development, marketing, and retail optimisation. In its 2024 report, the company highlighted how automation and advanced analytics help refine promotional campaigns, in-store displays, and pricing strategies.
While Nestlé did not specify which regions will be most affected, analysts predict that administrative and mid-level management roles in North America and Europe could face the highest impact as the company shifts towards leaner structures.
The move aligns with a broader corporate trend. Global companies such as Microsoft and Google have also implemented workforce cuts this year amid rising costs and rapid technological shifts. Microsoft recently announced another 9,000 layoffs, around 4% of its workforce, after cutting 6,000 roles earlier in the year, many in product and engineering. Google also laid off staff across its Platforms & Devices division, affecting teams behind Android, Pixel, and Chrome, in a bid to eliminate overlaps and drive agility.
Despite the restructuring, Nestlé reported a 4.3% rise in organic sales in the third quarter of 2025. The company reaffirmed its commitment to medium-term investments but warned of persistent risks tied to global inflation and consumer uncertainty.
North America remains its largest market, where inflation and rising tariffs have made consumers more cautious, although overall demand has remained stable.
Investors reacted positively to the cost-cutting plan. Nestlé’s stock rose by 7.6% on Thursday following the announcement.
For MSMEs, particularly those in the food, retail, and supply chain sectors, Nestlé’s move signals growing pressure to adopt digital tools and automation to stay competitive. As major corporations reduce operational costs through AI and technology, smaller suppliers and distributors may face tougher compliance demands, leaner contracts, and shifting expectations around efficiency.
At the same time, the rise of automation could open new opportunities for tech-savvy small businesses providing digital logistics, AI solutions, and specialised services that large manufacturers increasingly outsource.
