Nestle, a Swiss food conglomerate known for brands such as Nescafe and KitKats, has announced plans to reduce its global workforce by 16,000 jobs in a bid to enhance its financial performance. The company aims to achieve this reduction over the next two years while raising targeted cost savings to 3 billion Swiss francs by the end of the following year, up from the initial target of 2.5 billion Swiss francs.
Regarding the impact on its Canadian operations, Nestle Canada’s senior vice-president, Catherine O’Brien, stated that the job cuts will affect markets and functions globally, with each market developing its own plan. Specific numbers for the Canadian market are yet to be disclosed.
Nestle plans to eliminate 12,000 white-collar positions across various locations, expecting annual savings of 1 billion Swiss francs by the end of the upcoming year. Additionally, 4,000 jobs will be cut as part of productivity initiatives in manufacturing and the supply chain.
CEO Philipp Navratil emphasized the need for Nestle to adapt to a changing world swiftly. The company has faced challenges, including the recent dismissal of CEO Laurent Freixe due to an undisclosed relationship with a subordinate. Navratil, a long-serving Nestle executive, took over as CEO following Freixe’s departure.
Nestle is also grappling with external pressures like rising commodity costs and tariffs. To counter increased coffee and cocoa expenses, the company implemented price hikes. U.S. President Donald Trump’s tariffs on Brazilian products, such as coffee and orange juice, have added to the challenges faced by Nestle.
In the U.S., coffee consumption heavily relies on imports, with Brazil, Colombia, and Vietnam being significant suppliers. Cocoa prices surged to record levels last year due to supply constraints from adverse weather conditions. Although cocoa costs have somewhat stabilized in 2025, they remain substantially higher than in previous years.
The news of Nestle’s job cuts resulted in a nearly eight percent rise in the company’s shares on the SIX Swiss Exchange. In the U.S. market, the stock also saw a similar increase at the opening bell on Thursday.
