Nestlé has announced a sweeping global workforce reduction affecting over 16,000 employees as newly appointed CEO Philipp Navratil implements a dramatic restructuring plan focused heavily on automation and operational efficiency. The world’s largest food company confirmed it will eliminate approximately 6% of its global workforce over the next two years, with significant implications for manufacturing and supply chain operations worldwide.
The massive workforce restructuring includes 12,000 white-collar positions and an additional 4,000 manufacturing and supply-chain roles, representing one of the most significant workforce reductions in the food industry’s recent history. According to the company’s official announcement, this strategic shift toward automation and digital transformation will fundamentally reshape how the KitKat and Nesquik manufacturer operates across its global network. This major workforce restructuring reflects broader industry trends toward automated manufacturing processes.
Automation-Driven Transformation
In his LinkedIn post accompanying the announcement, Navratil emphasized that the company is “transforming how we work” and will “simplify our organization and automate our processes.” The move toward automation represents a fundamental shift in Nestlé’s operational strategy, with the company explicitly citing automation as a key driver behind the workforce reductions.
A Nestlé spokesperson elaborated to Fortune that “this initiative is focused on transforming our ways of working, streamlining the organization and processes, and leveraging digitalization and automation.” The company’s manufacturing facilities worldwide are expected to see significant technological upgrades as part of this transformation, potentially mirroring the kind of technological investments seen in other food manufacturers pursuing similar efficiency goals.
Financial Performance Context
The restructuring comes against a backdrop of mixed financial performance. For the first nine months of 2025, Nestlé reported sales declining 1.9% to approximately $82.8 billion compared to the same period last year. However, organic sales—which exclude currency and acquisition effects—actually rose 3.3% during the same period, indicating stronger underlying business performance than the headline numbers suggest.
The discrepancy highlights the significant currency headwinds facing global operations, with the stronger Swiss franc negatively impacting reported figures. This financial pressure has accelerated the company’s cost-cutting initiatives, including the substantial workforce reduction now underway. These challenges are occurring within a broader context of ongoing supply chain pressures affecting food manufacturers globally.
Leadership Transition and Strategic Direction
Navratil’s appointment last month followed the dismissal of former CEO Laurent Frexie, who served for just one year before an undisclosed romantic relationship with a subordinate came to light. The new CEO now faces the formidable task of steering Nestlé through shifting consumer preferences and challenging market conditions.
“The world is changing, and Nestlé needs to change faster,” Navratil stated in the company disclosure. He emphasized that the transformation “will include making hard but necessary decisions to reduce headcount over the next two years… Along with other measures, we are working to substantially reduce our costs.” This leadership approach reflects a growing trend of industry leaders partnering with advanced technologies to drive operational improvements.
Global Implementation Strategy
While the workforce reduction will affect employees across Nestlé’s global operations, the company emphasized that implementation will vary by market. A Nestlé spokesperson noted that “it will affect each market in a different way, and each market will prepare its own plan,” indicating a tailored approach rather than a one-size-fits-all implementation.
The company declined to provide specific details about which facilities or regions would be most affected, stating that “we are not in a position to share more details at this stage.” This strategic ambiguity reflects the complex nature of major corporate restructuring initiatives across different geographic markets and operational contexts.
Industry Implications and Future Outlook
Nestlé’s move signals a broader trend in the consumer packaged goods industry, where companies are increasingly turning to automation and digital transformation to address changing consumer demands and economic pressures. The shift away from processed foods and consumer resistance to price increases have created significant headwinds for traditional food manufacturers.
The substantial investment in automation technologies suggests Nestlé is preparing for a more digitally-driven future, potentially incorporating advanced systems similar to those seen in cutting-edge computing platforms that enable sophisticated manufacturing processes. As the restructuring unfolds over the next two years, the food manufacturing industry will be watching closely to see how this automation-focused strategy impacts Nestlé’s competitive position and operational efficiency.
The success of this transformation will likely influence how other major food manufacturers approach their own operational strategies in an increasingly automated and efficiency-driven marketplace.
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