12,000 white-collar employees, 4,000 manufacturing and supply chain staff to be hit
Nestlé has announced that it is laying off 16,000 employees over the next two years as part of its measures to reduce costs.
"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," said Nestlé CEO Philipp Navratil in a statement.
The layoffs will impact 12,000 white-collar professionals across functions and geographies, as well as 4,000 employees in its manufacturing and supply chain.
Nestlé, the world's largest food company, employs 277,000 employees worldwide. The layoffs are almost six per cent of its total headcount.
"We will do this with respect and transparency," Navratil said.
The white-collar layoffs are expected to drive annual savings of CHF (Swiss francs) 1.0 billion by the end of 2027, according to Nestlé. It is part of the organisation's measures to "substantially reduce" its costs.
"We are increasing our savings target to CHF3.0 billion by the end of 2027," Navratil said.
"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."
Navratil's announcement comes less than two months following his appointment as CEO after Laurent Freixe was terminated for an "undisclosed romantic relationship" with a direct subordinate.
