Nestlé cuts 16,000 jobs worldwide in effort to cut costs
Nestle is cutting 16,000 jobs globally as part of efforts to revive its financial performance.
The Swiss food giant, which makes Nescafe, KitKat, pet food and many other well-known consumer brands, said on Thursday it would cut jobs over the next two years. The company also said it was increasing targeted cost cuts to 3 billion Swiss francs ($5.32 billion CDN) by the end of next year from a planned 2.5 billion Swiss francs ($4.43 billion CDN).
Nestle Canada did not directly respond to questions about what the cuts mean for its Canadian operations.
“The announced workforce reductions will apply across markets and operations globally over the next two years,” Catherine O’Brien, senior vice president of Nestlé Canada, said in an email.
“This will impact each market differently, and each market will make its own plans. At this stage, we are not in a position to give specific numbers.”
Nestle said Thursday it would eliminate 12,000 white-collar positions at several locations. The cuts are expected to yield annual savings of 1 billion Swiss francs ($1.77 billion Cdn) by the end of next year. The company will cut 4,000 jobs as part of ongoing productivity initiatives across its manufacturing and supply chain.
“The world is changing and Nestlé needs to change fast,” CEO Philippe Navratil said in a statement.
It’s been a tumultuous year for the Vevey, Switzerland-based company. Last month, Nestlé fired CEO Laurent Freix following an investigation into an undisclosed relationship with a subordinate.
Freaks had been on the job for only a year. He was replaced by Navratil, a longtime Nestlé executive.
Chairman Paul Bulke stepped down shortly after Frekes was ousted.
Nestle, like other food makers, is grappling with a number of external headwinds, including rising commodity costs and US tariffs. The company announced price increases over the summer to offset the higher costs of coffee and cocoa.
US President Donald Trump has imposed a 50 percent tariff on Brazilian goods like coffee and orange juice. The Trump administration imposed a 40 percent tariff on Brazilian products in July, on top of a previously imposed 10 percent tariff.
Coffee habits in America are almost entirely driven by imports. Official US government data shows that Brazil, the world’s top coffee producer, supplies about 30 percent of the US market, followed by Colombia at about 20 percent and Vietnam at about 10 percent. Tariff negotiations are ongoing.
Cocoa prices reached a record high last year as bad weather in the areas where it is grown disrupted supplies and hit companies like Nestle hard. While cocoa costs began to decline in 2025 as supply increased, cocoa remains much more expensive than two years ago.
Nestlé shares rose nearly eight percent on the SIX Swiss Exchange. The company’s stock, which trades over the counter in the U.S., jumped to about the same level as the opening bell on Thursday.
