Nestle is set to reduce its workforce by 16,000 employees globally in a bid to enhance its financial performance. The Swiss food company, known for popular brands like Nescafe, KitKats, and pet foods, announced that the job cuts will be implemented over the next two years. Additionally, Nestle plans to increase targeted cost reductions to 3 billion Swiss francs ($5.32 billion Cdn) by the end of the following year, up from the initially planned 2.5 billion Swiss francs ($4.43 billion Cdn).
Responding to inquiries about the impact on its Canadian operations, Nestle Canada’s senior vice-president, Catherine O’Brien, stated that the staff reductions will affect global markets and functions over the next two years. The company anticipates varying effects on each market, with individual plans being prepared accordingly. Specific numerical details are currently unavailable.
The job cuts will primarily focus on eliminating 12,000 white-collar positions across multiple locations, with projected annual savings of 1 billion Swiss francs ($1.77 billion Cdn) by the end of the following year. Nestle also intends to remove 4,000 jobs as part of its ongoing productivity initiatives within manufacturing and the supply chain.
Nestle’s CEO, Philipp Navratil, emphasized the need for rapid adaptation, stating, “The world is changing, and Nestle needs to change faster.” The company has faced significant upheavals, including the recent dismissal of CEO Laurent Freixe following an internal investigation into a undisclosed relationship with a subordinate. Freixe, who held the position for only a year, was succeeded by longtime Nestle executive Navratil. Shortly after Freixe’s departure, chairman Paul Bulcke resigned prematurely.
Amidst external challenges such as escalating commodity costs and U.S. tariffs, Nestle, like other food producers, raised prices during the summer to counter increased coffee and cocoa expenses. Notably, U.S. President Donald Trump imposed tariffs of 50% on Brazilian goods like coffee and orange juice, following an earlier 40% duty in July on top of a 10% tariff. These tariffs have impacted the industry, with ongoing negotiations to address the situation.
The cocoa market experienced a surge in prices last year due to adverse weather conditions affecting supply, impacting companies like Nestle. While cocoa costs have slightly declined in 2025 with increased supply, they remain significantly higher compared to two years ago. Following these developments, Nestle’s shares surged by nearly eight per cent on the SIX Swiss Exchange and by a similar percentage on the U.S. over-the-counter market during Thursday’s opening bell.