Nestlé, the world’s largest food company, has announced plans to cut 16,000 jobs globally over the next two years as AI and automation in the workplace drive sweeping changes in its operations. The company said the restructuring aims to reduce costs and boost productivity amid rising global competition.
In a statement on Thursday, Nestlé revealed that about 12,000 white-collar positions will be affected as it seeks “operational efficiency” through automation and shared services. Another 4,000 roles will be cut from its manufacturing and supply chain divisions, representing nearly 6% of its total workforce.
“The world is changing, and Nestlé needs to change faster,” new Chief Executive Officer Philipp Navratil said. “This will include making hard but necessary decisions to reduce headcount.”
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The announcement has renewed discussions about how AI and automation in the workplace are reshaping global industries and threatening traditional jobs. Nestlé says it already uses artificial intelligence in product development, research, and marketing analytics to improve decision-making and efficiency.
Despite the restructuring, Nestlé reported a 4.3% rise in organic sales in the third quarter and maintained its commitment to medium-term investment. Its stock rose 7.6% in early Thursday trading, reflecting investor optimism about the company’s long-term strategy amid the rise of AI and automation in the workplace.