The Biggest Consumer Goods Giant in the World Is Laying Off Thousands of Workers: ‘The World Is Changing’
Nestl茅 owns more than 2,000 brands, including Nespresso and KitKat.
Key Takeaways
- Nestl茅 is the largest consumer goods company in the world and owns more than 2,000 brands, including Gerber baby food and Purina pet food.
- On Thursday, the company announced that it would reduce its workforce by 16,000 globally over the next two years.
- Nestl茅 employs 227,000 workers worldwide, with 36,000 employees based in the U.S.
Nestl茅, the in the world with a market capitalization of , is preparing to cut 16,000 jobs globally over the next two years.
Nestl茅, which oversees more than including Nespresso, Gerber baby food, Purina pet food and KitKat candy bars, on Thursday that the layoffs would target approximately 12,000 white-collar jobs, resulting in a cost savings of $1.25 billion. The remaining 4,000 jobs will affect those in manufacturing and the supply chain positions. The job cuts will reduce Nestl茅’s global workforce by 6% overall.
“The world is changing, and Nestl茅 needs to change faster,” said Philipp Navratil, Nestl茅 CEO, on Thursday. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”
Nestl茅’s U.S. division has about 36,000 employees, according to . The company employs about globally.
The layoffs are part of Nestl茅’s wider effort to reduce spending by 2027, up from its previous target of . The company said in the press release that it would increase automation and sharing services among divisions to fill in the gaps left by laid-off employees.
It’s unclear how Nestl茅 plans to bring more automation to its corporate offices. A recent published earlier this month from Challenger, Gray and Christmas shows that more than 17,000 jobs have been lost this year so far due to AI.
Navratil stepped into the CEO role last month after former CEO Laurent Freixe was fired for failing to disclose a , which was a breach of Nestl茅’s code of conduct. Navratil is a longtime Nestl茅 employee who first joined the company as an internal auditor in 2001. He rose through the ranks and was previously chief executive of Nestl茅 Nespresso, according to his .
Other consumer goods companies have recently announced plans to cut jobs. Procter & Gamble indicated in June that it would , or 7,000 jobs, as part of a two-year restructuring program. Meanwhile, Est茅e Lauder approved out of a 57,000-person global workforce in August.
Related: Meta Informs Staff that Layoffs Will Begin in a Now-Leaked Internal Memo
Key Takeaways
- Nestl茅 is the largest consumer goods company in the world and owns more than 2,000 brands, including Gerber baby food and Purina pet food.
- On Thursday, the company announced that it would reduce its workforce by 16,000 globally over the next two years.
- Nestl茅 employs 227,000 workers worldwide, with 36,000 employees based in the U.S.
Nestl茅, the in the world with a market capitalization of , is preparing to cut 16,000 jobs globally over the next two years.
Nestl茅, which oversees more than including Nespresso, Gerber baby food, Purina pet food and KitKat candy bars, on Thursday that the layoffs would target approximately 12,000 white-collar jobs, resulting in a cost savings of $1.25 billion. The remaining 4,000 jobs will affect those in manufacturing and the supply chain positions. The job cuts will reduce Nestl茅’s global workforce by 6% overall.
“The world is changing, and Nestl茅 needs to change faster,” said Philipp Navratil, Nestl茅 CEO, on Thursday. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”
