🔗 Share this article

Corporate Image

Global consumer goods leader the Swiss conglomerate announced it will cut 16,000 jobs over the next two years, as the recently appointed chief executive Philipp Navratil drives a strategy to prioritize products offering the “most lucrative outcomes”.

The Swiss company has to “adapt more quickly” to remain competitive in a changing world and adopt a “achievement-focused approach” that rejects ceding ground to competitors, according to the CEO.

He replaced ex-chief executive the previous leader, who was dismissed in September.

These workforce reductions were disclosed on the fourth weekday as the corporation shared stronger sales figures for the initial three quarters of 2025, with higher product movement across its major categories, such as beverages and confectionery.

The biggest consumer packaged goods corporation, Nestlé manages hundreds of brands, including well-known names in coffee and snacks.

The company plans to eliminate 12,000 white collar jobs alongside 4,000 further jobs company-wide within the next two years, it said in a statement.

These job cuts will save the consumer goods leader about 1bn SFr (£940m) annually as a component of an ongoing cost-savings effort, it said.

Its equity price rose by more than seven percent shortly after its trading update and job cuts were made public.

Mr Navratil commented: “We are cultivating a organizational ethos that embraces a achievement-oriented approach, that refuses to tolerate losing market share, and where winning is rewarded... The marketplace is evolving, and we must adapt more rapidly.”

Such change would include “difficult yet essential choices to cut staff numbers,” he said.

Equity analyst a financial commentator said the update indicated that Nestlé's leader aims to “increase openness to aspects that were previously more opaque in Nestlé's cost-saving plans.”

These layoffs, she said, seem to be an attempt to “reset expectations and rebuild investor confidence through concrete measures.”

The former CEO was sacked by the company in the start of last fall after an investigation into reports from staff that he failed to report a private liaison with a direct subordinate.

The former board leader the ex-chairman accelerated his departure date and resigned in the same month.

It was reported at the time that investors blamed the former chairman for the company's ongoing problems.

In the prior year, an inquiry revealed its baby formula and foods available in emerging markets included excessive amounts of added sugars.

The analysis, conducted by non-profit organizations, established that in several situations, the same products marketed in wealthy countries had zero additional sweeteners.

• Nestlé operates hundreds of brands internationally.
• Layoffs will involve sixteen thousand staff members over the coming 24 months.
• Expense cuts are anticipated to reach 1bn SFr each year.
• Equity rose seven and a half percent post the announcement.