Nestle’s plans to cut 16,000 jobs over next 2 years will affect global markets
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Nestle announced plans to cut 16,000 jobs globally across all markets and functions. Its research and development centre in Singapore employs more than 200 staff.
PHOTO: REUTERS
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SINGAPORE – Nestle’s plans to cut 16,000 jobs will affect markets and functions globally over the next two years.
Responding to queries from The Straits Times, a Nestle spokesperson said on Oct 17 that the workforce reduction will affect different markets differently, with each market responsible for developing its own plan.
“At this stage, we are not in a position to give specific numbers. The plan will be subject to consultations with works councils in various markets.”
The job cuts are expected to affect about 6 per cent of its total workforce globally, including 12,000 white-collar professionals across functions and geographies. The additional headcount reduction of 4,000 people is part of ongoing productivity initiatives in manufacturing and supply chain.
Nestle’s products, including Nespresso, Milo and KitKat, are sold in 185 countries. The manufacturing giant operates out of more than 330 factories in 75 countries.
A check by ST on Nestle’s job openings on its website showed that the company is still hiring for at least 15 Singapore-based roles in areas ranging from supply chain and procurement to research and product development.
The announcement came amid leadership turmoil in the company involving the change of two chief executives in just over a year. Mr Mark Schneider was let go in 2024 over performance-related concerns after spending almost eight years in the company, and replaced by Mr Laurent Freixe.
Mr Freixe was then dismissed by Nestle over an undisclosed romantic relationship with a direct subordinate
“The world is changing, and Nestle needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years,” said Nestle’s new chief executive Philipp Navratil in a press statement on Oct 16.
ST has contacted the National Trades Union Congress for a comment.
In March 2025, Nestle announced that with support from the Economic Development Board, its research and development centre in Singapore would strengthen local capabilities to support various roles ranging from chefs to engineers and product developers. This would enable the company to push for innovation in areas such as plant-based products, sustainable packaging and digital transformation.
Nestle opened its research and development (R&D) centre for South-east Asia in Singapore in 1980. The manufacturing facility, which includes the Nestle Quality Assurance Centre, employs more than 200 employees. Globally, the company has more than 4,000 employees working across 23 R&D centres.
