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Nestle Job Cuts: Nestlé has announced plans to cut around 16,000 jobs across the globe over the next two years. The company says the decision is part of a wider effort to reduce costs and improve efficiency through automation.
Out of the total, nearly 12,000 white-collar positions will be affected. Nestlé, the maker of popular brands like KitKat and Nesquik, says it wants to streamline its operations by automating more processes and expanding shared service centers.
Nestlé will also eliminate about 4,000 jobs in its manufacturing and supply chain units. The company says these changes are aimed at improving productivity and streamlining operations.
Altogether, the cuts represent nearly 6% of Nestlé’s global workforce. “The world is evolving, and Nestlé needs to move faster,” said the company’s new CEO, Philipp Navratil. “We have to make some tough but essential decisions, and that includes reducing our workforce.”
The announcement comes at a time when the rapid growth of artificial intelligence is sparking fears of job losses across many industries. In May, the CEO of Anthropic, a leading AI company, cautioned that the technology could cause a significant surge in unemployment.
Nestlé says it already uses AI in several parts of its business, including research and development. According to its latest annual report, the company also relies on automation and advanced analytics to plan promotions, manage discounts, and design in-store displays.
The upcoming layoffs add to the challenges at Nestlé after the abrupt departure of its previous CEO in early September. Laurent Freixe was let go for not reporting a romantic relationship with a direct report, which broke the company’s code of conduct.
Nestlé said its organic sales, a key measure of growth, increased by 4.3% in the third quarter. The company emphasized that it remains committed to investing over the medium term, despite ongoing economic and consumer uncertainties.
Nestlé’s biggest market is in North America. Lately, U.S. consumers have grown wary as inflation fears mount, partly due to rising tariffs.
Still, spending has stayed fairly resilient. On Thursday morning, Nestlé’s stock saw a sharp jump. By 7:30 a.m. ET, it had climbed 7.6%.
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