Nestlé SA begins retrenchment of over 400 workers in South Africa amid global restructuring plan
Retrenchment notices come as the global food giant restructures operations, cuts jobs worldwide and reshapes its business divisions.
SOUTH AFRICA – Nestlé SA has begun issuing retrenchment notices to more than 400 employees in South Africa as part of a sweeping global restructuring that will reorganise the food giant around four core divisions, according to people familiar with the matter.
The process marks the early stage of a broader overhaul of the company’s operations across Africa, with additional job cuts expected in other markets including East Africa.
At least 100 employees have already begun severance discussions, the people said, asking not to be identified because the information is private.
The consultations signal the start of a restructuring process that could extend beyond South Africa as Nestlé reviews its regional structure and workforce as part of a wider global transformation programme. Further workforce changes are expected as the review progresses.
The restructuring comes as Nestlé, under its new Chief Executive Officer Philipp Navratil, implements a global plan to cut about 16,000 jobs, representing roughly 6% of its workforce worldwide.
The overhaul also includes divesting selected non-core brands and businesses as the company seeks to streamline operations and focus on key growth areas.
It has agreed to sell its remaining ice cream operations, including brands such as D’Onofrio, Real Dairy, Parlour and Lafrutta, to Froneri, its joint venture with PAI Partners.
A Nestlé spokeswoman said workforce reductions would vary by country as transformation plans are developed locally in line with each market’s business needs and regulatory requirements.
She added that the company could not comment on the final number of jobs that may be affected while consultations remain ongoing.
“We remain firmly committed to playing our part in the development of the local and Africa’s economy as a whole. We are positive that we are paving the way for a long-term sustainable future on the continent.”
Earlier this year, the company introduced a revised performance management system that expands evaluation levels to six from three and increases the scope of potential financial rewards for employees.
The system links stronger performance more directly to bonuses, while lower ratings receive reduced incentives, according to the company.
“We have introduced a RIG gatekeeper into the bonus; this is a minimum level of RIG to be achieved,” Navratil said, adding that bonuses for functional leaders were now linked to group performance.
For the financial year ending December 31, 2025, Nestlé reported total sales of CHF 89.49 billion, equivalent to about US$115.97 billion, representing a 2% decline from the previous year.
The company recorded organic growth of 3.5%, supported by pricing growth of 2.8% and real internal growth of 0.8%.
The figures were disclosed alongside the restructuring programme which aims to reposition the group around four main business divisions globally as the company reshapes operations.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
