Nestlé will cut 16,000 jobs over the next two years — about 6% of its global workforce — as part of a major cost-saving drive under new chief executive Philipp Navratil. The layoffs will include 12,000 white-collar positions and 4,000 roles in manufacturing and supply chains.
“The world is changing and Nestlé needs to change faster,” Navratil said, promising the cuts would be made “with respect and transparency.” The Swiss food giant, which owns KitKat, Nescafé, and Purina, aims to save 3 billion Swiss francs (£2.8 billion) by 2027, up from a previous goal of 2.5 billion.
Navratil, who replaced Laurent Freixe after his dismissal last month, said Nestlé would invest more aggressively in innovation while automating operations to boost efficiency.
The move follows a 1.9% decline in reported sales to 65.9 billion francs over the first nine months of the year, driven by currency fluctuations. Organic sales, however, grew 3.3%, led by coffee and confectionery products.
Analyst Chris Beckett said the restructuring marks a shift in tone for the company: “Navratil isn’t afraid to take drastic action to restore Nestlé’s performance — but for now, it’s still a work in progress.”
