Nestl\u00e9 is cutting 16,000 jobs globally as the Swiss food giant cuts costs as part of its efforts to revive its financial performance.<\/p>\n
Nestl\u00e9, which makes Nescaf\u00e9, KitKats, pet foods and many other well-known consumer brands, said Thursday that the job cuts will take place over the next two years. The Swiss company also said that it is raising targeted cost cuts to 3 billion Swiss francs ($3.76 billion) by the end of next year, up from a planned 2.5 billion Swiss francs ($3.13 billion).<\/p>\n
It has been a turbulent year for the company, based Vevey, Switzerland. Last month, Nestle dismissed<\/a> CEO Laurent Freixe after an investigation into an undisclosed relationship with a subordinate. <\/p>\n Freixe had only been on the job for a year. He was replaced by Philipp Navratil, a longtime Nestl\u00e9 executive. <\/p>\n Shortly after Freixe was ousted, Chairman Paul Bulcke stepped down early. <\/p>\n Nestl\u00e9 is also fighting a host of external headwinds like other food makers, including rising commodity costs and U.S. imposed tariffs<\/a>. The company announced price hikes over the summer to offset higher coffee and cocoa costs.<\/p>\n President Donald Trump has implemented a 50% tariff<\/a> on Brazilian goods like coffee<\/a> and orange juice. The Trump administration imposed a 40% tariff on Brazilian products in July, which was on top of a 10% tariff imposed earlier. Coffee habits in the U.S. are almost exclusively fueled by imports. Official U.S. government data shows Brazil, the world\u2019s top coffee producer, supplies about 30% of the American market, followed by Colombia at roughly 20% and Vietnam at about 10%. Tariff negotiations<\/a> are ongoing. <\/p>\n