🔗 Share this article

Corporate Image

Food and beverage giant Nestlé announced it will cut sixteen thousand jobs during the upcoming biennium, as the recently appointed chief executive Philipp Navratil advances a plan to concentrate on products offering the “highest potential returns”.

This multinational corporation has to “change faster” to remain competitive in a changing world and embrace a “achievement-focused approach” that does not accept declining competitive position, according to the CEO.

His appointment followed ex-chief executive Laurent Freixe, who was let go in last fall.

The job cuts were disclosed on the fourth weekday as the corporation shared improved revenue numbers for the first nine months of 2025, with higher revenue across its major categories, encompassing beverages and confectionery.

The biggest consumer packaged goods company, this industry leader owns numerous labels, among them Nescafé, KitKat and Maggi.

The company aims to get rid of 12,000 professional positions alongside 4,000 further jobs throughout the organization over the coming 24 months, it said in a statement.

These job cuts will save the food giant about CHF 1 billion per annum as within an continuous efficiency drive, it stated.

Its equity price increased seven and a half percent soon after its trading update and restructuring news were revealed.

Mr Navratil commented: “We are fostering a organizational ethos that adopts a results-driven attitude, that does not accept market share declines, and where achievement is incentivized... The marketplace is evolving, and we must adapt more rapidly.”

This transformation would include “tough but required choices to reduce headcount,” he noted.

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

The workforce reductions, she said, are likely an attempt to “recalibrate projections and restore shareholder trust through tangible steps.”

The former CEO was dismissed by the company in the beginning of the ninth month after an investigation into reports from staff that he failed to report a private liaison with a junior employee.

Its departing chairman the ex-chairman brought forward his exit timeline and left his post in the same month.

Media stated at the time that investors attributed responsibility to the outgoing leader for the firm's continuing challenges.

In the prior year, an study discovered its baby formula and foods available in developing nations had excessive amounts of added sugars.

The research, carried out by advocacy groups, found that in several situations, the same products sold in wealthy countries had no extra sugars.

• Nestlé operates a wide array of labels internationally.
• Layoffs will involve 16,000 employees during the next two years.
• Expense cuts are projected to amount to 1bn SFr per year.
• Share price rose significantly after the update.