Nestlé, the multinational food and beverage giant known for brands such as KitKat and Nescafé, has announced plans to cut 16,000 jobs over the next two years in an attempt to reduce costs and increase sales.
The job cuts—amounting to nearly 6% of Nestlé’s global workforce—will include 12,000 white-collar roles and 4,000 positions in manufacturing and supply chain operations. The move marks one of the largest restructurings in the company’s recent history.
“The world is changing and Nestlé needs to change faster,” said Philipp Navratil, Nestlé’s newly appointed CEO, according to The Guardian. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”
Navratil took over the reins last month from Laurent Freixe, who was dismissed following his failure to disclose a romantic relationship with a subordinate. Navratil has pledged to accelerate a cost-saving plan initiated by his predecessor, in a bid to free up cash and reorient the company toward faster-growing product segments and markets.
The announcement appeared to be welcomed by investors. Nestlé shares rose nearly 9%, helping to lift Europe’s food and beverage sector by more than 3.3% on Thursday morning, CNBC reported.
The company has not yet specified which regions or departments will be most affected by the layoffs, but emphasized that the process will be carried out in phases, with communication and support for affected employees.
Nestlé, headquartered in Switzerland, employs approximately 270,000 people worldwide and operates in over 180 countries.