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Food and beverage giant Nestlé is set to reduce its global headcount by approximately 16,000 in the coming two years.
In a statement issued on Thursday, 16 October, Nestlé’s Swiss-based head office said that “the world is changing, and Nestlé needs to change faster”, and this will include making the “hard but necessary decisions” to reduce headcount over the next two years.
According to the company, the planned global headcount reduction is around 16,000 in the next two years, subject to consultation, and will include approximately 12,000 white-collar professionals across functions and geographies, and a further 4,000 roles as part of ongoing productivity initiatives in manufacturing and supply chain.
Along with other measures being taken, Nestlé is working to “substantially” reduce its costs, with the company having upped its savings target to CHF3 billion (AU$5.87 billion) by the end of 2027.
Nestlé Australia told HR Leader that the company is working to make its operations more efficient, including leveraging shared services and automating processes, to drive its business transformation.
“Reductions will be implemented with respect and transparency,” it said.
“The announced workforce reduction applies to markets and functions globally over the next two years.
“It will affect each market in a different way, and each market will prepare its own plan.”
Nestlé Australia has 3,750 staff, but when asked how many employees Down Under are likely to be impacted by the announced changes, the company said it is “not in a position to give specific numbers” at this stage.
The head office statement, from Nestlé chief executive Philipp Navratil, said: “As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns.”
“We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation. We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.”
“The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.”
The move is the latest announcement from a major corporation to unveil large-scale headcount reductions: earlier this month, Lufthansa said it would replace 4,000 staff with AI by 2030; last month, Fiverr said it would cut 250 jobs to be an “AI-first company; and in July, Recruit Holdings (which owns Indeed and Glassdoor) said it would cut 1,300 roles, in the face of AI’s rise.
Jerome Doraisamy is the managing editor of Momentum Media’s professional services suite, encompassing Lawyers Weekly, HR Leader, Accountants Daily, and Accounting Times. He has worked as a journalist and podcast host at Momentum Media since February 2018. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of the Minds Count Foundation.
