🔗 Share this article

Corporate Image

Global consumer goods leader Nestlé has declared it will cut 16,000 jobs within the coming 24 months, as the recently appointed chief executive the company's fresh leader drives a initiative to prioritize products offering the “highest potential returns”.

This multinational corporation needs to “adapt more quickly” to stay aligned with a dynamic global environment and embrace a “performance mindset” that does not accept declining competitive position, according to the CEO.

He took over from ex-chief executive Laurent Freixe, who was terminated in the ninth month.

The layoff announcement were made public on the fourth weekday as Nestlé reported stronger performance metrics for the initial three quarters of 2025, with increased sales across its major categories, including hot drinks and snacks.

The biggest food & beverage company, Nestlé operates a multitude of brands, like its coffee, chocolate, and food brands.

Nestlé aims to get rid of 12,000 professional positions on top of 4,000 additional positions company-wide within the next two years, it said in a statement.

These job cuts will save the consumer goods leader approximately one billion Swiss francs per annum as within an sustained expense reduction program, it confirmed.

The company's stock value was up 7.5% following its performance report and layoff announcement were made public.

Mr Navratil stated: “We are cultivating a organizational ethos that adopts a results-driven attitude, that refuses to tolerate market share declines, and where winning is rewarded... The world is changing, and the company requires accelerated transformation.”

Such change would involve “hard but necessary decisions to reduce headcount,” he added.

Financial expert Diana Radu stated the update signalled that Mr Navratil aims to “bring greater transparency to areas that were once ambiguous in its expense reduction initiatives.”

The job cuts, she explained, are likely an initiative to “recalibrate projections and rebuild investor confidence through tangible steps.”

Mr Navratil's predecessor was terminated by the company in the beginning of the ninth month subsequent to an inquiry into reports from staff that he did not disclose a private liaison with a direct subordinate.

Its departing chairman Paul Bulcke brought forward his departure date and stepped down in the corresponding timeframe.

It was reported at the moment that investors held accountable Mr Bulcke for the firm's continuing challenges.

Last year, an study found its baby formula and foods available in low- and middle-income countries had undesirably high quantities of sweeteners.

The analysis, conducted by non-profit organizations, found that in several situations, the same products available in developed nations had zero additional sweeteners.

• The corporation owns numerous product lines globally.
• Job cuts will affect sixteen thousand staff members during the next two years.
• Savings are anticipated to reach one billion Swiss francs per year.
• Share price rose 7.5% following the update.