By Admin 
As the glory of Diwali ends, the atmosphere in the corporate sector is becoming scary. On one hand, companies are presenting profit reports on festivals, while on the other hand, the jobs of thousands of employees are in danger. Large multinational companies, once known as the places to provide “dream jobs”, are now preparing for mass layoffs in the name of cutting costs and investing in AI (Artificial Intelligence).
The world’s leading food company Nestle SA made a big announcement just after Diwali, laying off 16,000 employees. This is about 6% of the total team of the company. This includes approximately 12,000 office (white collar) and 4,000 production and supply chain employees. The surprising thing is that this decision came at a time when Nestle had shown a growth of 4.3% in the recent quarter. That means sales increased, profits came, but still jobs are being lost.
New CEO and a period of change in the company
Philippe Navratil, who will take charge of Nestlé in September 2025, clearly said, “This decision is difficult, but necessary.” The company is now trying to make itself faster, smarter and more profitable. With this layoff, Nestle wants to save 1 billion Swiss francs i.e. about Rs 9,000 crore every year. The company aims to reduce expenses by 3 billion francs by 2027.
Sales increased but market shrank
The increase in Nestle’s sales was due to increasing prices, but the real challenge is “volume growth” i.e. demand for goods in the market. The sales figure has fallen from 91.35 billion to 89.54 billion francs. This means high prices drive away customers and give the company an excuse to lay off its employees.
An atmosphere of influence and fear in India
Although Nestle India has not made any official layoffs yet, the number of employees in the company has decreased by 3.9% last year. The company says that this is part of automation and re-structuring.
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Amazon will also cut jobs
After Nestle, now scary news has also come from Amazon India. According to reports, the company may cut up to 15% of the employees in its HR department. This department is called “People Experience Technology (PTX)” in the company, in which more than 10,000 people work from all over the world.
Billions of dollars invested in AI, will humans be useless?
The company is going to invest about $ 100 billion (Rs 8,900 billion) in AI data centers and cloud servers by next year. CEO Andy Jassy himself has said that the company will replace some positions with AI in the coming time.
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