Nestlé to cut 16,000 jobs under new CEO in major global restructuring
The restructuring is part of a broader strategy to make Nestlé more agile and performance-driven.
SWITZERLAND – Nestlé has announced plans to cut 16,000 jobs worldwide as part of a sweeping restructuring effort aimed at cutting costs, boosting efficiency, and regaining investor confidence.
The move marks one of the largest workforce reductions in the company’s history and the first major initiative under its new CEO, Philipp Navratil, who took the helm in September following a period of management upheaval.
The job cuts, representing about 5.8% of Nestlé’s 277,000 global employees, will take place over the next two years, with 12,000 white-collar roles and 4,000 positions in manufacturing and supply chain operations set to be eliminated.
The company has also raised its cost-saving target to 3 billion Swiss francs (US$3.77 billion) by the end of 2027, up from the previous 2.5 billion francs.
Navratil said the restructuring is part of a broader strategy to make Nestlé more agile and performance-driven.
“The world is changing, and Nestlé needs to change faster,” he said, emphasizing that driving real internal growth (RIG) and fostering a “performance mindset” will be central to the company’s turnaround plan.
The announcement follows a turbulent period for Nestlé’s leadership, which saw Navratil replace Laurent Freixe, dismissed over an internal conduct issue, and Chairman Paul Bulcke step down early to make way for former Inditex chief Pablo Isla.
Despite the leadership changes, Nestlé’s stock rose about 8% in early trading after the announcement, signaling investor optimism about the company’s direction.
Nestlé has been facing multiple challenges, including U.S. import tariffs, rising production costs, and fragile consumer confidence amid shifting preferences toward healthier eating.
The Swiss food giant, known for brands such as KitKat, Nespresso, and Maggi, is also contending with higher debt levels and slower growth in some regions, particularly in Greater China, where it admitted to focusing too heavily on distribution rather than consumer demand.
Financially, Nestlé reported 4.3% organic sales growth in the third quarter, above analyst estimates, driven largely by coffee and confectionery segments.
The company maintained its 2025 guidance, forecasting organic sales growth improvement over 2024 and an underlying trading operating profit margin of 16% or higher.
Navratil described the restructuring as a necessary reset to reignite growth and ensure Nestlé remains competitive in a rapidly evolving global market.
“We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation,” he said.
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