Nestlé has announced plans to cut 16,000 jobs over the next two years as part of a sweeping cost-reduction and growth initiative under its new chief executive, Philipp Navratil. The layoffs—representing nearly 6% of the company’s global workforce—will include about 12,000 white-collar professionals and 4,000 manufacturing and supply chain roles.
“The world is changing and Nestlé needs to change faster,” Navratil said. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”
The cuts are part of an accelerated cost-saving plan aimed at freeing up 3 billion Swiss francs (£2.8 billion) by 2027, up from a previous target of 2.5 billion francs. Navratil, who took over last month following the dismissal of former CEO Laurent Freixe for failing to disclose a relationship with a subordinate, said the company must “be bolder in investing at scale and driving innovation.”
Nestlé, which owns global brands such as KitKat, Nescafé, Häagen-Dazs, Nespresso, and Purina, has faced mounting pressure to improve growth and reduce debt. Freixe’s firing and the subsequent resignation of board chair Paul Bulcke added to instability within the Swiss-based multinational.
The company said it aims to streamline operations, increase automation, and improve efficiency across all divisions. While Nestlé employs around 4,200 people in the UK—primarily at its Gatwick headquarters and York factory—the firm declined to specify which countries would be most affected by the cuts.
The restructuring announcement coincided with Nestlé’s financial update, reporting a 1.9% year-on-year decline in sales to 65.9 billion Swiss francs for the first nine months of the year. The company attributed this mainly to foreign exchange losses of 5.4%, while organic sales rose by 3.3%. Growth was strongest in coffee and confectionery, driven in part by inflation-related price increases amid higher coffee and cocoa costs.
Emerging markets saw 5.2% organic growth, while developed markets rose 2.1%. Despite these gains, analysts say the company remains under pressure to restore its former performance levels.
Chris Beckett, consumer staples analyst at Quilter Cheviot, commented: “The new Nestlé chief executive has used today’s results to show that despite being a career Nestlé employee, it will not be business as usual. Management have grand ambitions to bring Nestlé back to where it has historically been, but for now, the company is still a work in progress.”
