Nestlé to cut 16,000 jobs

Nestlé, the world’s largest packaged food company, said on Thursday it will cut 16,000 jobs globally over the next two years as part of a sweeping cost-saving and automation drive, in one of its biggest restructuring moves in years.

The Swiss food giant, which makes household staples such as Maggi seasoning, Milo, KitKat, and Nescafé, said the cuts will mostly affect white-collar roles, with about 12,000 professional jobs and 4,000 manufacturing and supply chain positions to go.

The company, which employs about 277,000 people globally, did not specify how the decision would affect individual markets — including Nigeria, one of its largest bases in Africa.

Nestlé Nigeria Plc, a subsidiary listed on the Nigerian Exchange, employs an undisclosed number of people at its factories in Agbara (Ogun State) and Abuja, and operates one of the country’s most visible fast-moving consumer goods (FMCG) brands.

A company spokesperson told Sky News that it was “not in a position to give concrete figures for individual markets” at this time.

Global Cost Cuts, Local Uncertainty

Nestlé’s new CEO, Philipp Navratil, said the company must “change faster” to respond to a shifting global economy, as he unveiled an expanded cost-saving target of 3 billion Swiss francs ($3.77 billion) by 2027 — up from 2.5 billion francs previously.

The announcement comes amid what analysts describe as a period of “unprecedented management turmoil” for Nestlé, following the abrupt dismissal of former CEO Laurent Freixe in September and a leadership reshuffle that saw former Inditex chief Pablo Isla take over as chairman.

The company expects to save about $1.1 billion annually from the job cuts, while maintaining its profit margin forecast of at least 16% in 2025.

However, the scale of the layoffs has raised concerns in countries where Nestlé has a major industrial presence — including Nigeria, where consumer goods firms are already battling weak demand, rising production costs, and currency instability.

What’s at Stake

Nestlé Nigeria, which has operated since 1961, is one of the country’s most valuable consumer goods firms by market capitalization. The company reported ₦51 billion profit in the first half of 2025, according to its financial filings, but continues to face mounting cost pressures from inflation, energy prices, and foreign exchange volatility.

Analysts say any staff or supply chain cuts affecting Nigerian operations could have ripple effects across a fragile FMCG sector that employs thousands directly and indirectly.

The job cuts are part of Nestlé’s broader move toward automation and “operational efficiency”, a trend sweeping through global manufacturing as firms grapple with higher costs and technological disruption.

Nestlé said consultations would take place “where applicable” before roles are cut.