Nestle is cutting 16,000 jobs worldwide as part of efforts to revive its financial performance.
The Swiss food giant, which makes Nescafe, KitKats, pet food and many other well-known consumer brands, said Thursday that job cuts will occur over the next two years. The company also said it was increasing its cost reduction target to 3 billion Swiss francs (C$5.32 billion) by the end of next year, up from a target of 2.5 billion Swiss francs (C$4.43 billion).
Nestlé Canada did not directly respond to questions about what the cuts mean for its operations in Canada.
“The announced workforce reductions will impact markets and functions around the world over the next two years,” said Catherine O'Brien, senior vice president of Nestle Canada, in an email.
“This will impact each market differently and each market will prepare its own plan. At this stage we cannot give specific figures.”
Nestle said Thursday it would eliminate 12,000 white-collar positions across several locations. The cuts are expected to result in annual savings of CHF1 billion ($1.77 billion) by the end of next year. The company will cut 4,000 jobs as part of ongoing initiatives to improve productivity in its manufacturing and supply chain.
“The world is changing and Nestlé needs to change faster,” CEO Philippe Navratil said in a statement.
It's been a turbulent year for the company based in Vevey, Switzerland. Nestlé fired CEO Laurent Frakes last month following an investigation into an undisclosed relationship with a subordinate.
Freixe worked in this post for only a year. He was replaced by Navratil, a longtime Nestle executive.
Shortly after Freichet's dismissal, Chairman Paul Bühlke resigned early.
Nestle, like other food makers, is also grappling with a host of external headwinds, including rising commodity prices and U.S. tariffs. Over the summer, the company announced price increases to offset rising coffee and cocoa prices.
US President Donald Trump has imposed a 50 percent tariff on Brazilian goods such as coffee and orange juice. In July, the Trump administration imposed a 40 percent tariff on Brazilian goods, on top of a 10 percent tariff imposed previously.
US coffee habits are fueled almost exclusively by imports. Official U.S. government data shows that Brazil, the world's largest coffee producer, supplies about 30 percent of the U.S. market, followed by Colombia (about 20 percent) and Vietnam (about 10 percent). Tariff negotiations are ongoing.
The price of cocoa soared to record levels last year after inclement weather in regions where it is grown limited supply and hit companies such as Nestle hard. Although the cost of cocoa began falling in 2025 as supply increased, cocoa is now significantly more expensive than it was just two years ago.
Nestle shares rose almost eight percent on the Swiss SIX stock exchange. Shares of the company, which is traded on the U.S. over-the-counter market, jumped about the same level at the opening bell on Thursday.
