Consumer Staples

Hormel Foods Corporation is undertaking a corporate restructuring to strategically align resources with organizational priorities, support future growth, and strengthen its overall business. This initiative, which includes a voluntary early retirement program for some non-plant employees, the closure of open roles, and reductions across office-based positions, aims to prioritize cost-savings and streamline operations. The company is redirecting investments towards key areas such as technology, innovation, food safety, and quality. This restructuring is a response to a challenging economic environment characterized by slowing profit growth, persistent higher-than-expected inflation in key commodity inputs, and a need for enhanced cost discipline.

Nestlé announced a global workforce reduction of 16,000 employees over two years, effective from October 16, 2025, as part of a strategic initiative to enhance operational efficiency, reduce costs, and improve productivity. This restructuring, led by new CEO Philipp Navratil, aims to achieve 3 billion Swiss francs in cost savings by the end of 2027. The decision is driven by a need to adapt to a changing global market, address rising costs, inflation, supply chain disruptions, and increased competition in the packaged goods sector, with a focus on leveraging automation, including AI. Navratil emphasized the necessity of 'hard but necessary decisions to reduce headcount' to accelerate growth momentum and secure Nestlé's future as an industry leader.