Nestlé will cut 16,000 jobs worldwide over the next two years.

BarcelonaSwiss food giant Nestlé announced Thursday a global workforce reduction that will result in the cutting of approximately 16,000 jobs over the next two years, equivalent to almost 6% of its workforce, and also raised its cost savings target to 3 billion francs from the end of 2027. The decision comes just months after the Appointment of Spanish executive Pablo Isla as new president of the group last June.

Company sources have explained to ARA that the negotiation of the layoff plan is in the hands of the European Works Council, so figures for each country have not yet been specified. Nestlé has its Spanish headquarters in Esplugues de Llobregat (Baix Llobregat) and four plants in Catalonia—in Reus, Castellbisbal, Viladrau, and Girona—as well as two other factories in Extremadura, two in Asturias, one in Cantabria, and one in Galicia, according to the company's website. Union sources have also confirmed to ARA that, at the moment, the works councils of the production centers in Spain have no information on whether these layoffs will affect the multinational's staff in Spain.

"The world is changing and Nestlé needs to change faster. This will include making difficult but necessary decisions to reduce staff over the next two years," said Philipp Navratil, Nestlé's chief executive, who took over last September after the dismissal of Laurent Freixe for violating the company's code of conductIn fact, all of this also led to Isla's early appointment to the presidency—the former CEO of Inditex was then vice president.

Layoffs to reduce costs

This global workforce adjustment includes a reduction of approximately 12,000 administrative professionals across different functions and geographies, generating annual savings of 1 billion francs (1.076 billion euros) by the end of 2027, double the original plan, while one-time restructuring costs are expected to double.

Nestlé also plans to make an additional workforce reduction of approximately 4,000 people as part of ongoing productivity initiatives in manufacturing and the supply chain. Furthermore, the company has identified among its strategic priorities for the coming months "growth opportunities and a clear focus on allocating capital rationally, and supporting the strongest opportunities with further large-scale investment," along with greater ambition in innovation, and expanding its consumer capacity and focus capabilities, including.

"As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing opportunities and businesses with the greatest return potential," Navratil explained, adding that the company will be bolder in investing on a large scale and driving innovation to achieve growth. "Along with other measures, we are working to substantially reduce our costs and today we are increasing our savings target to CHF 3 billion by the end of 2027," the executive stressed, for whom the actions being taken "will secure Nestlé's future" as a leader.