As part of an effort to improve its financial performance, Nestlé is cutting some 16,000 jobs over the next two years.
Nestlé — which makes Nescafé drinks, Purina pet food and other products — said Thursday it is raising targeted cost cuts to 3 billion Swiss francs ($3.76 billion) by the end of next year, up from a planned 2.5 billion Swiss francs ($3.13 billion), according to a report from The Associated Press.
Like other food companies, Nestlé is fighting external issues such as rising commodity costs and the negative impact of tariffs. The company said in July that it offset higher coffee and cocoa-related costs with price increases, according to the AP report.
Nestle said Thursday that it will eliminate 12,000 white-collar positions in multiple locations, cuts it expects to achieve annual savings of 1 billion Swiss francs ($1.25 billion) by the end of next year. The company will cut 4,000 jobs as part of ongoing productivity initiatives in its manufacturing and supply chain.
“The world is changing, and Nestlé needs to change faster,” CEO Philipp Navratil said in a statement.
