Nestle to Cut 16,000 Jobs Worldwide in Effort to Cut Costs

Nestle is cutting 16,000 jobs worldwide as part of efforts to revamp its financial performance.

The Swiss Food Giant, which makes Nescafe, Kitkats, pet food, pet food and other popular consumer products, said on Thursday that the job cuts will take place over the next two years. The company also said it is increasing its cost reduction target to 3 billion Swiss francs ($5.32 billion CDN) by the end of next year, up from the previously planned 3 billion Swiss francs ($4.43 billion CDN).

Nestle Canada did not directly respond to questions about what the cuts meant for its Canadian operations.

“The announced layoffs apply to markets and operations globally for the next two years,” said Catherine O’Brien, Senior President at Nestle Canada, in an email.

“It will affect each market differently, and each market will prepare its own plan. At the moment, we are not in a position to give specific numbers.”

Nestle said on Thursday that it would cut 12,000 white-collar jobs across multiple locations. The cuts are expected to achieve 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 in its manufacturing and supply chain.

“The world is changing, and the hive needs to change quickly,” said CEO Philipp Navratil in a statement.

It’s been a tumultuous year for the company, which is based in Vevey, Switzerland. Last month, Nestlé fired CEO Laurent Freixe after an investigation into the relationship between unleavened bread and ground.

Freixe had only been on the job for one year. He was replaced by Navratil, an Eveltime Nestle Executive.

Shortly after Freixe was fired, chairman Paul Bullet stepped down in the morning.

Nestle is also fighting for the keeper of foreign capital like other food manufacturers, including the rising costs of tariffs and US taxes. The company announced that Pric Hikes in the summer from higher coffee and cocoa costs.

US President Donald Trump has imposed a 50 percent tariff on Brazilian goods such as coffee and orange juice. The Trump administration imposed a 40 percent tariff on Brazilian products in July, which was higher than the 10 percent tariffs previously imposed.

Coffee practices in the US were almost exclusively developed through imports. US government data shows Brazil, the world’s top coffee producer, supplies 30 percent of the American market, followed by Colombia at about 20 percent and Vietnam at 10 percent. Tax negotiations are ongoing.

The price of cocoa rose to record highs last year after poor weather in areas where forced supplies were found and hit companies like disasters. While COCOA costs began to fall in 2025 as supply increased, cocoa is more expensive than it was two years ago.

Nestle shares rose nearly eight percent on the Saint Swiss Exchange. The company’s stock, which trades over the counter in the US, jumped by about the same level at Bell Bell on Thursday.