Nestlé to cut 16,000 jobs in major business transformation & process automation push
Nestlé is increasing its focus on operational efficiency, including leveraging shared services and automating processes, to drive positive business transformation
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Nestlé plans to eliminate 16,000 roles in the next two years as it targets huge cost savings supported by business transformation and process automation.
The world's largest packaged food company is aiming to save 3 billion Swiss francs (US$3.3 billion) by the end of 2027, according to new CEO Philipp Navratil. Navratil said 12,000 office jobs will be impacted alongside 4,000 roles in manufacturing and supply chain.
Nestlé recently reported better-than-expected sales growth of 4.3 percent for the third quarter, with the firm prioritizing new growth opportunities and increased cost savings.
Speaking at a digital transformation conference in May, Mehmet Sahinoglu, digital transformation and innovation lead UK&I at Nestlé, said that people are central to Nestlé’s digital transformation strategy.
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Learn MoreNestlé prioritizes business transformation and process automation
Nestlé is increasing its focus on operational efficiency, including leveraging shared services and automating processes, to drive positive business transformation. “We are transforming how we work,” Navratil wrote on LinkedIn. “We are evolving and will simplify our organization and automate our processes.”
As Nestlé moves forward, it will be rigorous in its approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns, Navratil said in a separate statement.
“We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation. We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.”
The world is changing, and Nestlé needs to change faster, Navratil added. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs.”
The actions Nestlé is taking will secure its future as an industry leader and, collectively, they will enable it to improve overall performance and deliver shareholder value, according to Navratil.
Automation is key to business transformation
Automation is a major component of many business transformation strategies. The PEX Report 2025/26, based on the results of a global survey of more than 200 professionals, found that 38 percent of organizations currently use workflow automation to support business transformation efforts. This is followed by low-code automation (28 percent) and intelligent automation (20 percent).
More than a quarter of respondents (28 percent) said their organization is planning to invest in workflow automation in the next 12 months, followed by low-code automation (21 percent), intelligent automation (20 percent), and robotic process automation (RPA) (17 percent).
Image credit: Nestlé
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