In a bold restructuring move, Nestlé announced plans to cut 16,000 jobs globally, marking the first major decision under newly appointed CEO Philipp Navratil. The world’s largest packaged food company aims to restore investor confidence and reignite growth after a turbulent leadership period.
The job reductions represent nearly 6% of Nestlé’s 277,000-strong workforce, and are part of a sweeping cost-saving initiative expected to generate 3 billion Swiss francs ($3.77 billion) by 2027 — an increase from the earlier target of 2.5 billion francs.
“The world is changing, and Nestlé needs to change faster,” Navratil stated, emphasizing the company’s renewed focus on agility and performance.
Management Shake-Up and Investor Reaction
Nestlé’s leadership has seen significant upheaval in recent months. Navratil replaced Laurent Freixe, who was dismissed in September, while Chairman Paul Bulcke also stepped down earlier than expected, making way for Pablo Isla, the former Inditex chief.
Despite the turbulence, investor sentiment improved as Nestlé shares jumped 8% following the announcement. Analysts described the layoffs and cost-saving measures as “fuel to the turnaround fire,” reflecting optimism about the company’s renewed direction.
Strategic Priorities and Market Focus
Navratil’s turnaround plan includes 12,000 white-collar layoffs over two years and another 4,000 reductions in manufacturing and supply chain roles. The company is also conducting strategic reviews of its waters, premium beverages, and vitamins divisions, aiming to focus resources on high-growth and high-margin segments.
In the third quarter, organic sales rose by 4.3%, surpassing analyst expectations of 3.7%, driven by strong demand for coffee and confectionery products. However, performance in Greater China lagged, prompting efforts to rebuild consumer demand rather than simply expand distribution.
Looking Ahead
Nestlé reaffirmed its 2025 guidance, forecasting improved organic sales growth and an operating profit margin of at least 16%. The company acknowledged challenges such as U.S. import tariffs and shifting consumer preferences toward healthier food options, but Navratil expressed confidence in achieving sustainable growth.
“We’re fostering a performance mindset — one that doesn’t accept losing market share and rewards winning,” he added.
As the Swiss food giant repositions itself for a leaner and more competitive future, these Nestlé job cuts signal the beginning of a new era under Navratil’s leadership.
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