Nestlé has begun issuing retrenchment notices to more than 400 employees in South Africa as part of a sweeping global reorganisation that will see approximately 16,000 jobs cut worldwide, according to reports and company statements.
The layoffs in South Africa mark the first phase of what is expected to be a broader restructuring across the company’s African operations, with additional reductions anticipated in other markets, including East Africa. At least 100 affected employees in South Africa have already entered severance discussions as consultations get underway.
The job cuts form part of a global transformation programme under Chief Executive Officer Philipp Navratil, who is steering the Swiss food giant toward a more streamlined operating model built around four core divisions. The company plans to reduce roughly six percent of its global workforce while divesting businesses considered non core to its long term strategy.
As part of the restructuring, Nestlé 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 private equity firm PAI Partners. The move is intended to sharpen focus on higher growth segments and improve operational efficiency.
In a statement, a Nestlé spokesperson said workforce reductions would vary by country and would be conducted in line with local labour laws and consultation requirements. The total number of job losses in each market will depend on the outcome of ongoing discussions with employees and labour representatives.
The South African retrenchments come at a sensitive moment for the country’s labour market. Data from Statistics South Africa showed that the unemployment rate declined to 31.4 percent in the fourth quarter of 2025, down from 31.9 percent in the previous quarter. The improvement was supported by gains in community and social services as well as construction. Despite the modest recovery, unemployment in South Africa remains among the highest globally, having stayed above 30 percent since the peak of the Covid period in 2020.
Analysts note that multinational consumer goods companies are facing mounting pressure from shifting consumer demand, rising input costs and intensifying competition. In emerging markets, currency volatility and economic constraints have further complicated operating conditions, prompting companies to reassess cost structures and portfolio priorities.
Nestlé’s restructuring reflects a broader trend among global corporations seeking leaner organisational models and stronger margins in a more uncertain economic environment. By concentrating resources on selected growth categories and divesting peripheral assets, the company aims to enhance agility and long term profitability.
For South Africa, however, the immediate impact will be felt by affected workers and their families at a time when employment opportunities remain limited. Labour unions and industry observers are expected to monitor the consultation process closely as the restructuring unfolds.