The global food and beverage powerhouse, Nestlé, has announced plans to cut 16,000 jobs over the next two years as part of a major restructuring drive led by its new CEO, Philipp Navratil.
The move is aimed at refocusing the company on products with the “highest potential returns.”
Navratil, who succeeded former CEO Laurent Freixe after his dismissal in September, said the company must “change faster” to stay competitive and foster a “performance mindset” that refuses to “accept losing market share to rivals.”
The Swiss multinational revealed the layoffs on Thursday alongside its financial update, which showed stronger sales across key segments such as coffee and confectionery during the first nine months of 2025.
Nestlé, which owns household brands including Nescafé, KitKat, and Maggi, said 12,000 white-collar roles and 4,000 other positions would be cut.
The restructuring is expected to save around 1 billion Swiss francs (£940 million) annually as part of ongoing efficiency measures.
Following the announcement, Nestlé’s shares surged by 7.5%.
“We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded… The world is changing, and Nestlé needs to change faster,” Navratil stated, adding that such transformation would involve “hard but necessary decisions to reduce headcount.”
Equity analyst Diana Radu observed that the latest update showed Navratil’s intent to “bring greater transparency to areas that were previously more opaque in Nestlé’s cost-saving plans.”
She described the job cuts as an attempt to “reset expectations and rebuild investor confidence through measurable actions.”
Navratil’s predecessor, Freixe, was removed from his position in early September following whistleblower allegations that he failed to disclose a romantic relationship with a direct subordinate.
That same month, outgoing chairman Paul Bulcke also stepped down earlier than planned, amid investor criticism over his handling of the company’s persistent issues.
In 2024, Nestlé faced scrutiny after a report by a Swiss NGO and the International Baby Food Action Network revealed that its baby food products sold in low- and middle-income countries contained high sugar levels, unlike similar products sold in wealthier markets, which had no added sugar.
