International multinational food and drink processing company Nestlé has announced that it is planning to cut approximately 16,000 jobs globally over the next two years.
In total, this will account for nearly 6% of the company’s total workforce, with 4,000 of these estimated to come from Nestlé’s manufacturing and supply chain operations.
In the same statement, the company reported an increase in profits on its nine-month sales report.
Organic sales growth (OG) saw an increase of 3.3%, with 0.6% real internal growth (RIG) and 2.8% pricing.
Additionally, OG strengthened sequentially during the period across all Zones and major global businesses, led by improved RIG across all major categories.
Which specific jobs cut remains unknown, with the food retailer still to reveal to its employees what roles are impacted.
Nestlé CEO Philipp Navratil said: “Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through.
“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing 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 world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years.
“We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs, and today we are increasing our savings target to CHF 3.0 billion by the end of 2027.”
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