In a sign of the changing times for global business, even the consumer goods industry’s biggest names are making tough calls.
Nestlé, the world’s largest food and beverage company, is all set to slash 16,000 jobs globally as part of a sweeping two-year restructuring plan, according to a report by a business daily.
The move comes under the leadership of new CEO Philipp Navratil and highlights the growing pressure on multinational corporations to adapt to a fast-evolving economic landscape.
The cuts will impact around 6% of Nestlé’s total workforce and reflect broader shifts in corporate strategy, where efficiency, automation, and digital transformation are beginning to take precedence over traditional expansion.
CEO Navratil’s Reset: A Drive To Save CHF 1 Billion
Philipp Navratil, who recently took the helm at Nestlé, described the move as part of a “strategic reset” aimed at strengthening the company’s bottom line while modernising its global operations.
“The world is changing, and Nestlé needs to change faster,” media reported quoting Navratil’s internal communication. “This will include making hard but necessary decisions to reduce headcount.”
The job reductions will unfold gradually over the next two years, targeting approximately 12,000 white-collar positions across administrative and corporate departments, with another 4,000 cuts expected in production and supply chain roles.
The restructuring is expected to generate savings of up to 1 billion Swiss francs (CHF), which Nestlé plans to reinvest in innovation, sustainability efforts, and its digital roadmap.
A New Chapter For Nestlé
Nestlé’s recalibration reflects a broader ambition to reposition the company in a world where business norms are being rewritten. With a presence in over 180 countries and a workforce of nearly 270,000, the Swiss giant has long been associated with household brands like KitKat, Maggi, Nescafé, and Cerelac.
However, in recent years, the company has faced multiple headwinds: rising raw material costs, currency fluctuations, and weakening consumer demand, particularly in developed markets like Europe and North America.
Under Navratil, Nestlé is expected to sharpen its focus on high-growth regions such as Asia, Africa, and Latin America—markets where demand for consumer goods remains robust. Analysts believe the restructuring will help streamline operations, improve profit margins, and allow the company to stay competitive in an increasingly digital, AI-driven world.
A Global Trend: Nestlé Joins a Growing List of Companies Cutting Jobs
Nestlé’s decision mirrors a wider trend across sectors, with 2025 shaping up to be a year of significant workforce reductions. Over the past 10 months, thousands of jobs have been cut across industries as businesses recalibrate their strategies.
Here’s a snapshot of some of the biggest layoffs this year:
India’s IT major TCS has let go of 6,000 employees already and is expected to cut another 6,000 by year-end. The company is embracing automation and AI to reduce reliance on manual processes.
Amazon is reportedly downsizing 15% of roles within its HR and consumer-facing teams. The People eXperience and Technology (PXT) team, Amazon’s core HR division, has seen major cutbacks as the company seeks operational efficiency amid slower retail growth.
Alphabet-owned Google recently laid off around 100 staff from its creative and design teams. The tech giant is refocusing resources on its core growth areas: AI and cloud services. The CRM powerhouse has reduced its workforce by 4,000, cutting roles mostly in customer service. CEO Marc Benioff attributed the changes to growing reliance on AI-driven support tools.
In September, consulting giant Accenture announced more than 11,000 job cuts, citing reduced demand in traditional consulting and a need to pivot toward digital transformation solutions.
Microsoft has laid off over 15,000 employees this year. An additional 2,000 underperforming staff were released as part of performance-based reviews. CEO Satya Nadella pointed to the company’s evolving focus on AI, cloud infrastructure, and productivity tech.
Nestlé’s plan to cut 16,000 jobs now ranks among the largest layoff announcements in the FMCG sector in recent memory, further cementing the shift among legacy companies toward leaner operations.
What’s Driving The Layoff Wave?
Experts point to several overlapping forces behind this trend of corporate downsizing:
As companies adopt smarter tech, the need for large workforces—especially in administrative and support roles—is diminishing rapidly. Also, from inflation to higher borrowing rates, financial pressures are forcing firms to trim expenses.
Geopolitical issues, including wars and trade disruptions, are making long-term planning more complex, prompting businesses to stay agile and lean. This is one of the key factors.
Post-pandemic, shoppers have become more price-conscious and digitally inclined. Companies are adapting accordingly.
Cumulative Toll: Over 75,000 Jobs Lost In 10 Months
Nestlé SA – 16,000, Tata Consultancy Services – 12,000, Amazon – 15,000 (estimated), Google – 100, Accenture – 11,000, Salesforce – 4,000 and Microsoft – 17,000.
The Bigger Picture: Prioritising Efficiency Over Growth
While mass layoffs often stir anxiety and pushback, many investors view them as necessary recalibrations. Today’s corporate playbook is shifting from aggressive expansion to operational optimisation. The emphasis is now on smart investments—particularly in AI, automation, and sustainability.
Nestlé, like many others, now faces a delicate balancing act: reducing costs without alienating its workforce or stalling innovation. As the global economy continues to evolve, the companies that manage to stay nimble, lean, and forward-thinking may well define the next era of business success.
Also Read: Sudden Layoffs Shake Remote Workers Amid Corporate Restructuring https://www.vibesofindia.com/sudden-layoffs-shake-remote-workers-amid-corporate-restructuring/
