Nestlé, the global food and beverage powerhouse known for brands like Nespresso and Perrier, has announced a substantial workforce reduction plan, targeting the elimination of 16,000 jobs across its global operations within the next two years. This decision, confirmed on Thursday, has been met with a positive market reaction, with the company’s share price surging by over 8%.
The driving force behind this significant change is chief executive Philipp Navratil, who took the helm in early September. Navratil emphasized the need for Nestlé to adapt more rapidly to a changing world, stating, “The world is changing, and Nestlé needs to change faster.” He acknowledged that this transformation necessitates making “hard but necessary decisions to reduce headcount.”
The announcement coincided with the release of Nestlé’s nine-month financial report, which revealed a 1.9% decrease in sales, totaling 65.9 billion Swiss francs ($83 billion). The planned job cuts represent roughly 6% of the company’s total workforce. Specifically, the layoffs will include 12,000 white-collar positions, projected to save the company one billion Swiss francs—double the previously anticipated savings from this sector.
Additionally, 4,000 job reductions are already in progress within production and supply chain roles. Navratil also revealed that Nestlé is raising its overall savings target to three billion Swiss francs by the end of 2027, an increase from the earlier goal of 2.5 billion Swiss francs. Analysts view these measures as a strong indication of Navratil’s proactive approach, with one analyst noting that “he is going on the offensive” and that these initial steps are moving in the right direction.
Nestlé, with a vast portfolio of over 2,000 brands including KitKat, Maggi, and Purina, has experienced a turbulent period. This included the recent dismissal of its former CEO due to an office relationship, followed by the early departure of its chairman. The company has also faced scrutiny regarding its bottled water brands, particularly following a scandal in France in 2024.
Looking ahead, financial experts are hopeful that Navratil’s leadership will bring much-needed stability to the group, which has seen its growth momentum slow since 2022. While currency fluctuations impacted the headline sales figures, Nestlé reported a 3.3% organic sales growth in the first nine months of 2025, driven by a 2.8% increase in prices. Navratil remains focused on accelerating this growth, stating, “Results are starting to come through. Now we must do more and move faster to accelerate our growth momentum.” Coffee and confectionery segments were highlighted as key contributors to organic growth, with some markets seeing double-digit price hikes.
Recent third-quarter volume data also surpassed expectations, with a 1.5% increase between July and September, significantly outperforming the median forecast of 0.3% from financial analysts.
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