Artificial intelligence is often cited in the context of companies laying off employees. Yet, when you take a closer look at the most recent round of layoffs in the food and beverage industry, you’ll see that most companies are cutting jobs for entirely different reasons. Instead of AI, restructuring, cost pressures and changing consumer demand are the more common reasons behind these layoffs.
When companies say they’re laying off workers, it’s usually to save money, change how they work, or join with other companies. It’s not mainly because they want to use AI instead of people.
Heineken, for example, plans to cut up to 6,000 jobs worldwide as it seeks to become more efficient amid weaker beer demand. Nestle is also implementing a restructuring plan announced in late 2025 that will affect 16,000 jobs globally; up to 180 roles in France could also be affected by that plan.
The trend isn’t limited to one company.
JBS USA has been linked in public reporting to the closure of its facilities in Pennsylvania and Tennessee, moves that are estimated to affect 1,700 employees. The facility closures are part of broader changes in the company’s operations. Del Monte Foods is shutting down its Modesto, California plant and a related facility, with official notices indicating that about 765 positions could be affected.
BeatBox, meanwhile, terminated 158 jobs as it integrated operations following Anheuser-Busch InBev’s majority investment.
Why Are Layoffs Happening in the US?
Looking at these announcements, it’s evident that companies face different challenges, but some themes are similar. Some companies are restructuring following mergers and acquisitions, while others are responding to weaker demand by closing facilities or reducing costs.
AI is in the background, but in most cases, it’s not the main reason people are losing their jobs.
According to Jessica Hart, a fractional HR executive who advises food and beverage companies, “the idea that AI is driving these layoffs doesn’t reflect what we’re seeing on the ground.” According to her, these layoffs are more closely linked to profitability and labor costs.
According to Hart, businesses are mostly using AI to handle routine administrative tasks rather than to replace employees. For instance, scheduling systems may take employee availability, demand forecasts, and labor rules into account, giving managers more time to focus on leading their teams.
“AI is not the reason, in food and beverage, that roles are eliminated,” Hart said. “You need people to train the tool and keep fueling it with operational knowledge.”
Automation and robotics have been part of manufacturing for years now. In 2026, companies are using AI less to replace production workers and more for forecasting, scheduling, procurement, and planning.
Edwin Aiwazian, CEO of Lawyers for Justice, believes these layoffs are also being driven by broader business challenges.
“These businesses are operating in an environment where consumer preferences are in flux, margins are becoming slimmer, production is being optimized, and established brands must demonstrate their adaptability,” Aiwazian said.
The reasons behind F&B layoffs are similar across the industry. Companies are reorganizing their operations, closing or consolidating facilities, integrating acquired businesses, and seeking to protect profits as business conditions become more challenging.
Taken together, these examples show that the industry’s biggest workforce decisions are still being driven by restructuring, cost pressures, supply constraints, and changing consumer demand rather than generative AI.
Food for Thought Leadership
Food retail is undergoing a fundamental transformation, and few people have a better vantage point than the SupermarketGuru Phil Lempert. In this episode of Food for Thought Leadership, Lempert joins FI’s Chris Campbell to discuss the forces reshaping grocery, from inflation and private label growth to changing consumer expectations around health, wellness, and transparency.
