Another leadership change claims additional victims as Nestlé announces layoffs across its workforce. The Nestlé job cuts, aimed at “operational efficiency,” were announced as part of new CEO Navratil’s plans to turn the business around and evolve and simplify its processes. Nestlé’s restructuring efforts, while announced in 2025, will affect 16,000 jobs over the next two years.
The news is hard to digest considering the scale of the planned cuts, and it is particularly of note as Nestlé is one of the largest packaged food companies around, with a business that operates on a global scale. With downsizing efforts leading the conversation at most businesses this year, it’s no surprise that the food industry giant has also chosen to walk this path. The Nestlé layoffs represent a big shift in the world of employment, with the threat of automation slowly creeping up on workers.
“The world is changing, and Nestle needs to change faster,” Navratil said, with regard to the Nestlé layoffs. (Image: Pexels)
Nestlé Layoffs Are on Their Way as “Operational Efficiency” Targets Lead the Way
The Nestlé job cuts will unfold across its global workforce, with 16,000 staff expected to make an exit over the next two years. The layoffs will primarily target white collar workers, with 12,000 employees on the chopping block, leading to operational efficiency. The promised cuts will support the automation of multiple processes and the use of shared services instead of in-house workers. The other 4,000 roles will be eliminated in manufacturing and supply chain services. These changes represent 5.8% of the company’s 277,000 employees.
The Nestlé layoffs are part of new CEO Philipp Navratil’s plans to revitalize the business after it was recently pushed into the limelight for unfortunate reasons. Navratil took on the role of CEO in September after ex-CEO Laurent Freixe was displaced from the role. The leader was accused of failing to disclose a romantic relationship with a subordinate, which breached the company’s code of conduct.
While that displacement was a matter of concern for an entirely different reason, the layoffs at Nestlé are similarly alarming for employees. For shareholders, however, this has been a positive development. Nestlé’s stock surged following reports of the layoffs, rising by 9.3% and carrying Europe’s food and beverage sector up by 4.2% at closing on Thursday.
Nestlé’s Automation Layoffs Confirm Employee Fears About Technology
Is AI to blame for this displacement of labor? Yes, but partially. The Nestlé restructure announced in 2025 is largely about eliminating redundant expenses. The company is aiming to cut costs to 3 billion Swiss francs ($3.76 billion) by the end of 2027, which is higher than the 2.5 billion Swiss francs ($3.14 billion) in cost savings that were initially planned. This will require the business to identify multiple areas where expenses can be brought down, with the workforce being one of them.
The ability to make cuts within the workforce largely stems from the automation and efficiency promised by AI tools. The company website shows that AI technology has already revolutionized a number of internal procedures and, according to CNN, automation and analytics have been employed in procedures like promotional activities.
Much has been said about AI’s ability to transform the workforce, and for employees, the worries have largely outweighed the productivity gains. Despite this, there is data to show that while AI will replace some jobs, many will largely remain relevant to the workforce in the years to come. Particularly in people-facing roles, clients have expressed a preference for human connection over technological interactions. Will these predictions hold true? We’ll have to wait to know more.
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