No. of Recommendations: 0
I awoke this morning to great news (for me at least). For decades, one my larger positions has been Nestle (in Swiss franc, as part of my multi-currency strategy). It has been languishing for months and, while it never hit the ball out of the park, it had disappointingly given back most of its accumulated gains. Anyway, today it was up over 8%.
Why you might ask?
Nestlé's recent decision to cut 16,000 jobs worldwide is directly related to the company's increased use of automation and artificial intelligence (AI). The majority of these layoffs—about 12,000 white-collar positions—will be replaced in part by automated systems and AI-driven processes as Nestlé aims to boost operational efficiency and reduce costs. This strategic shift was confirmed by both the new CEO Philipp Navratil and official company statements, which highlight a transformation toward digitalization, process automation, and AI in areas ranging from research and development to promotional activities.
Industry analysts and company insiders note that while general economic pressures influenced the cuts, the rise of AI technology within Nestlé's operations significantly motivated the workforce reduction. The company says freed-up resources will be invested in new products, AI-driven operations, and further innovation in pursuit of long-term growth.
Now, if only my health insurance company would replace all of its "workers" (a term I use lightly) with AI....
Jeff
No. of Recommendations: 1
if only my health insurance company would replace all of its "workers" (a term I use lightly) with AI....
17 menus later, it hangs up (again)....
It recognizes your voice and hangs up....
AI can play music(?)/static/noise indefinitely--and not care....
Infinite forwards to non-existent numbers/departments/whatever....
No. of Recommendations: 1
The majority of these layoffs—about 12,000 white-collar positions—will be replaced in part by automated systems and AI-driven processes as Nestlé aims to boost operational efficiency and reduce costs.
Really? Or, is that their excuse? One of the Steelcase dealers I worked for had a RIF every year. Just as much work, but fewer people to do it. That was 20 years ago, before "AI" was a thing. Over the six years I worked there, I had a "boss" for one year. The other five, I was a department of one.
Steve
