Automation Causes Nestlé to Slash 16,000 Jobs

Nestlé will cut around 16,000 jobs worldwide over the next two years as it seeks to reduce costs through automation, the world’s largest food company said, Ana Nicolaci da Costa and Olesya Dmitracova reported for CNN.

The announcement comes amid growing fears that the rise of artificial intelligence (AI) could lead to widespread job losses across industries. (Photo: Nestlé Flickr)

Most of the layoffs — about 12,000 positions — will affect white-collar professionals as Nestlé targets “operational efficiency,” including through automation and shared services, the company behind brands such as KitKat and Nesquik said in a statement.

Another 4,000 jobs will be cut in manufacturing and supply chain operations as part of efforts to improve productivity.

The total job cuts amount to nearly 6% of Nestlé’s global workforce.

“The world is changing, and Nestlé needs to change faster,” said new CEO Philipp Navratil. “This will include making hard but necessary decisions to reduce headcount.”

The announcement comes amid growing fears that the rise of artificial intelligence (AI) could lead to widespread job losses across industries.

The CEO of AI firm Anthropic warned in May that automation could trigger a dramatic spike in unemployment.

Nestlé said on its website that it uses AI in areas such as research and development, and employs automation and advanced analytics in promotional activities like discounts and in-store displays.

The layoffs add to recent turmoil at the Swiss company, following the abrupt removal of former CEO Laurent Freixe in early September for failing to disclose a romantic relationship with a subordinate — a breach of Nestlé’s code of business conduct.