Nestlé cuts 16,000 jobs as part of an intensifying cost-cutting campaign

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. subordinate / səˈbɔr dn ɪt / (n.) – a person who has a lower position or rank than someone else in an organization or group
    Example:

    The manager discussed the new project with her subordinate.


  2. inclement / ɪnˈklɛm ənt / (adj.) – relating to weather that is cold, wet, or stormy
    Example:

    The game was canceled because of inclement weather.


  3. constrain / kənˈstreɪn / (v.) – to control something, especially by force or restriction
    Example:

    Bad weather constrained the farmers from planting their crops on time.


  4. vastly / ˈvæst li / (adv.) – by a very large amount; greatly
    Example:

    The new model is vastly better than the old one.


  5. white-collar / ˈʰwaɪtˈkɒl ər / (adj.) – relating to people who work in offices or do professional, clerical, or managerial jobs rather than physical labor
    Example:

    Many white-collar workers can now do their jobs from home.


Article

Read the text below.

Nestlé is cutting 16,000 jobs globally as the Swiss food giant cuts costs as part of its efforts to revive its financial performance.


Nestlé, which makes Nescafé, KitKats, pet foods, and many other well-known consumer brands, said that the job cuts will take place over the next two years. The Swiss company also said that 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).


It has been a turbulent year for the company based in Vevey, Switzerland. In September, Nestlé dismissed CEO Laurent Freixe after an investigation into an undisclosed relationship with a subordinate. Freixe had only been on the job for a year. He was replaced by Philipp Navratil, a longtime Nestlé executive.


Nestlé is also fighting a host of external headwinds like other food makers, including rising commodity costs and U.S.-imposed tariffs. The company announced price hikes over the summer to offset higher coffee and cocoa costs.


President Donald Trump has implemented a 50% tariff on Brazilian goods like coffee and orange juice. The Trump administration imposed a 40% tariff on Brazilian products in July, which was on top of a 10% tariff imposed earlier. Coffee habits in the U.S. are almost exclusively fueled by imports. Official U.S. government data shows Brazil, the world’s top coffee producer, supplies about 30% of the American market, followed by Colombia at roughly 20% and Vietnam at about 10%. Tariff negotiations are ongoing.


The price of cocoa soared to record highs last year after inclement weather in areas where it is grown constrained supply and hit companies like Nestlé hard. While cocoa costs began to fall in 2025 as supply increased, cocoa is vastly more expensive than it was just two years ago.


Nestlé said that it will eliminate 12,000 white-collar positions in multiple locations. The job cuts are expected 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.


This article was provided by The Associated Press.


 


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • Nestlé is cutting thousands of jobs worldwide to reduce costs. When a company faces financial trouble, should job cuts be the first or last option? Why do you say so? Discuss.
  • What are some better ways a company could cut costs without losing so many workers? Discuss.

Discussion B

  • How would you feel as an employee if your company announced thousands of job cuts? Discuss.
  • Based on the current economic situation in your country, do you think it would be easy to find a new job if your company announced job cuts? Why or why not? Discuss.