Nestlé S.A. shares rallied on Thursday after the company announced a major workforce reduction as part of a cost-cutting initiative, Azernews reports, citing foreign media.

The food giant revealed plans to lay off around 16,000 employees worldwide, aiming to streamline operations and save 3 billion Swiss francs (approximately $3.77 billion) by 2027.

The market responded strongly to the announcement - Nestlé's stock surged 7.87% to 82.12 Swiss francs per share at 9:14 a.m. CET, marking one of its best single-day performances in recent months.

According to the company, most of the job cuts will come from administrative and support roles, while core manufacturing and innovation operations will remain largely unaffected. Interestingly, Nestlé also confirmed increased investments in automation and digital transformation, aiming to boost long-term efficiency and agility.

Analysts note that while the layoffs are significant, the savings and strategic reinvestment - particularly in health-focused and sustainable food segments - may position Nestlé more competitively in the evolving global food market.

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