Global food and beverage powerhouse Nestlé has unveiled plans to cut 16,000 jobs worldwide over the next two years, in what marks one of its largest workforce reductions in recent years. The move forms part of a broader restructuring strategy aimed at improving efficiency, profitability, and competitiveness amid rising global costs and slowing growth.

The company plans to cut 12,000 office jobs and 4,000 factory roles to simplify operations and focus on profitable products like coffee, chocolate, and premium goods and also reviewing its water, premium beverage, and vitamins and supplements businesses to focus investment on the areas that are most profitable and have the best growth potential.

Nestlé is making these big changes as it faces increasing challenges and according to statistics, the company’s share price has dropped by about 35% since 2022 due to slow sales and rising costs. In 2024, sales grew by only 2.2%, its weakest in years, but there was a small recovery in 2025, with growth rising to 3.3% in the first nine months.

Despite all these challenges, Nestlé expects its restructuring to save 1 billion Swiss francs annually, helping reach a 3 billion franc cost-saving goal by 2027. However, analysts warn that while the cost cuts may boost short-term profits, Nestlé’s main challenge is to achieve lasting growth in major global markets.

“Nestlé’s leaders have big plans to restore the company’s past success, but it’s still a work in progress,” said Chris Beckett, an analyst at Quilter Cheviot, showing cautious optimism about the company’s recovery plan.

Nestlé’s restructuring highlights the hurdles of slow growth and shifting consumer habits. Its focus on efficiency and premium products will test its ability to regain momentum.