Nestlé, the Swiss food giant known for brands like Nescafé and KitKats, announced plans to eliminate 16,000 jobs globally over the next two years. This move comes as part of the company’s efforts to boost financial performance and raise targeted cost cuts to $3.76 billion by the end of next year. The company is facing challenges such as rising commodity costs, U.S. imposed tariffs, and supply chain disruptions due to inclement weather in cocoa-producing regions.

In response to these challenges, Nestlé is restructuring its workforce by cutting 12,000 white-collar positions and 4,000 jobs in manufacturing and supply chain. The company’s new CEO, Philipp Navratil, emphasized the need for Nestlé to adapt to a changing world and drive faster changes within the organization. The announcement of job cuts led to an 8% increase in Nestlé’s stock price on the SIX Swiss Exchange.