Nestle will cut 16,000 jobs over the next two years as part of a major cost-cutting program. Nestle has reported a slowdown in sales for the second consecutive year – consumers, burdened by constant price increases, are cutting back on spending and increasingly opting for cheaper private label products.
The layoffs, which account for nearly 6% of the total workforce of the Swiss giant, were announced by new CEO Philippe Navratil.
Navratil presented a plan to increase sales, achieve greater cost savings, and focus on the most efficient divisions of the company behind brands such as Kit Kat and Nescafe.
"The world is changing, and Nestle must change faster. This will involve making tough but necessary decisions about workforce reductions over the next two years," the CEO stated.
According to him, the cuts will affect 12,000 of the 118,000 positions in Nestle's business segment and another 4,000 of the 158,000 jobs in manufacturing and supply chain.
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