Nestlé Announces Plans to Cut 16,000 Jobs

Watch Nestlé Announces Plans to Cut 16,000 Jobs - Bloomberg on Dailymotion

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00:00So how's this going to happen? What's the cost of this? That sounds like an awful lot of job cuts to me.

00:04Like I know this is an enormous company, but nevertheless, 16,000 job cuts sounds like a big number.

00:09Yeah, you're absolutely right. That's the talk of the town, right? Besides like the already strong...

00:14Certainly the talk of Verve, I would imagine, this morning.

00:16Oh, yeah, definitely. That's for sure. I mean, they are just like, they announced these 16,000 job cuts.

00:22They didn't announce like where exactly it will be. They didn't say which geography region, like which field.

00:28What they said is like 12,000 of them will be white collar jobs.

00:34Okay. Is that an AI story? I don't know. But is that where, how easy are they to get rid of?

00:40Is this something that is going to cost the company a lot of money in the near term?

00:45That sounds like a fairly big transition.

00:47Yeah, it definitely is. It will come over the next two years.

00:51But they are actually expecting like cost savings. I think it was around 3 billion Swiss francs,

00:57which they announced to save till the end of 2027.

01:02And so we've got this new CEO. Yeah.

01:04You know, they're just a couple of weeks into the job.

01:07We had the alleged undisclosed romantic relationship with a subordinate going on with the past CEO.

01:13But with the new one, what's his vision?

01:16What is it that he wants to do to step up investments?

01:18Yeah. So he came in bold, right? He announced the job cuts. He announced a strong third quarter.

01:25And the investments, I think they really, like what was important to him was to lay out,

01:30they will be in growth areas. He specifically mentioned platforms,

01:36like they are hopping on the air fryer trend, for example,

01:40but also on the cold coffee trend, which is big with the Gen Z.

01:44Cold coffee trend.

01:46The cold coffee trend, like drinking cold coffee all year round.

01:50I'm not Gen Z either. Thanks for the comment.

01:50Yeah.