Nestlé To Cut 16,000 Jobs As New CEO Pushes Cost-Cutting Drive
Nestlé has announced plans to eliminate 16,000 jobs globally over the next two years as its new Chief Executive Officer, Philipp Navratil, moves to streamline operations and focus on higher-return products.
The Swiss food and beverage giant said the cuts are part of a broader effort to accelerate growth and strengthen efficiency amid increasing competition. The move will affect 12,000 white-collar employees and 4,000 additional roles across various departments.
“This is about building a performance-driven culture that doesn’t accept losing market share,” Mr Navratil said on Thursday while presenting the company’s latest financial update. “The world is changing, and Nestlé needs to change faster — even if that means making hard but necessary decisions to reduce headcount.”
The restructuring is expected to save the company roughly 1 billion Swiss francs (£940 million) annually. Following the announcement, Nestlé’s shares rose by 7.5%.
Mr Navratil, who took over in September after former CEO Laurent Freixe was dismissed over a workplace relationship, said the company will concentrate on product lines with the “highest potential returns.”
Industry analysts said the move signals a new phase of transparency and accountability for Nestlé. “This appears to be an effort to reset expectations and rebuild investor confidence through measurable actions,” said Diana Radu, an equity analyst at Morningstar.
The shake-up follows a turbulent period for the world’s largest food manufacturer, which owns household brands such as Nescafé, KitKat, and Maggi. In 2024, a report by a Swiss NGO revealed that some Nestlé baby food products sold in low- and middle-income countries contained added sugars, unlike versions sold in wealthier markets.
Victoria Scholar, head of investment at Interactive Investor, said the company’s new direction has been welcomed by investors. “Navratil is clearly looking to make his mark,” she said. “But challenges remain – including tariff pressures, rising debt, and fierce competition.”
