Food and beverage giant, Nestl?, has announced plans to cut 16,000 jobs worldwide as part of a sweeping $1 billion cost-saving program, a move that has sparked questions about potential impacts on its extensive African operations.

Nestl??s announcement of plans to cut 16,000 jobs globally as part of a sweeping $1 billion cost-saving initiative is likely to send ripples through African markets, where the food and beverage giant maintains a significantly footprint.

The layoffs, which include 12,000 white-collar positions in management and office roles and 4,000 in manufacturing, logistics, and supply chain departments, are part of Nestl??s global restructuring aimed at boosting profitability and streamlining operations.

Philipp Navratil, Nestl??s new CEO who took over in September, acknowledged the scale of the company?s upcoming restructuring, saying, ?The world is changing, and Nestl? needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.?

He added that the company aims to ?substantially reduce costs,? raising its total savings target to CHF 3 billion by the end of 2027.

The company says the move will help it focus investment on its strongest-performing categories, including coffee, confectionery, and premium goods.

Nestl? employs thousands of workers across over 40 African countries, with 16 factories spread across key markets such as Nigeria, Ghana, C?te d?Ivoire, Kenya, South Africa, and Zimbabwe.

According to Nestl?, the first nine months of 2025 showed steady growth across its Asia, Oceania, and Africa (AOA) region, with organic growth (OG) reaching 2.7%.

The company noted that the strongest performance came from Central and West Africa, where demand for key products such as Maggi, Milo, and Cerelac remained resilient despite inflation and supply chain Nestl? said this growth reflects Africa?s rising consumer base and continued investment in local manufacturing and distribution networks.

The company?s Africa operations are largely centered around two regional hubs: Central and West Africa (CWA) and East and Southern Africa (ESAR), which produce some of its most recognizable products, including Milo, Maggi, Cerelac, and Nescaf?. (Vanguard)

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