Nestlé Reveals Large-Scale 16,000 Position Eliminations as New CEO Drives Cost-Cutting Initiatives.

Corporate Image

Global consumer goods leader the Swiss conglomerate has declared it will cut 16,000 jobs over the next two years, as its new CEO Philipp Navratil advances a plan to focus on products offering the “highest potential returns”.

This multinational corporation has to “adapt more quickly” to remain competitive in a changing world and embrace a “achievement-focused approach” that does not accept losing market share, according to the CEO.

He took over from former CEO Laurent Freixe, who was let go in last fall.

These workforce reductions were made public on Thursday as the corporation reported stronger revenue numbers for the first three-quarters of 2025, with increased product movement across its key product lines, encompassing hot drinks and snacks.

Globally dominant packaged food and drink corporation, Nestlé operates a multitude of labels, including Nescafé, KitKat and Maggi.

The company intends to eliminate twelve thousand administrative positions alongside 4,000 other roles throughout the organization within the next two years, it announced publicly.

The lay-offs will result in savings of the consumer goods leader approximately CHF 1 billion each year as part of an continuous efficiency drive, it said.

The company's stock value increased by more than seven percent soon after its trading update and layoff announcement were revealed.

The CEO commented: “We are cultivating a organizational ethos that welcomes a performance mindset, that does not accept losing market share, and where winning is rewarded... The world is changing, and we must adapt more rapidly.”

The restructuring would encompass “difficult yet essential decisions to cut staff numbers,” he said.

Equity analyst Diana Radu stated the announcement signalled that Nestlé's leader aims to “bring greater transparency to areas that were once ambiguous in the company's efficiency strategy.”

These layoffs, she explained, are likely an initiative to “reset expectations and restore shareholder trust through tangible steps.”

The former CEO was dismissed by Nestlé in the start of last fall subsequent to an inquiry into internal complaints that he omitted to reveal a romantic relationship with a direct subordinate.

The former board leader Paul Bulcke accelerated his leaving schedule and stepped down in the corresponding timeframe.

It was reported at the period that stakeholders held accountable the outgoing leader for the firm's continuing challenges.

The previous year, an investigation discovered its baby formula and foods sold in emerging markets contained unhealthily high levels of sugar.

The study, conducted by non-profit organizations, found that in numerous instances, the same products marketed in developed nations had no extra sugars.

• The corporation operates numerous product lines internationally.
• Layoffs will impact 16,000 employees during the coming 24 months.
• Expense cuts are anticipated to reach one billion Swiss francs per year.
• Share price rose 7.5% post the news.