Nestlé to slash 16,000 job adopting AI, automation systems

Nestlé, the world's largest multinational food company, has announced that it will lay off 16,000 employees worldwide over the next two years.

According to the company, the above-mentioned measures are being taken to modernize the organizational structure and reduce costs.

According to the news agency 'Associated Press' (AP), the company said in its statement that the company is promoting artificial intelligence (AI), automation and 'shared services' systems to make work processes more efficient and faster, under which human jobs will be eliminated.

According to the company, the layoffs will have a greater impact on administrative, financial and support sectors, while some staff will also be reduced in the production and logistics sectors.

A Nestlé spokesperson said that 'the world is changing rapidly and they also have to adapt their systems to new requirements, so new measures are being taken.

The announcement comes amid a recent leadership shake-up, with the new CEO taking charge and initiating organizational reforms.

According to the company's financial report, Nestlé's sales rose 4.3 percent in the third quarter of this year, better than analysts' expectations. The company's shares also rose slightly after the layoffs were announced.

Experts say Nestlé's move reflects a growing trend of automation in the food industry, which could set an example for other global companies in the future.

Apart from Nestlé, several companies have announced thousands of job cuts following the advent of AI, while dozens of multinational companies have also cut thousands of jobs in the past two years.