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5h ago

Nestlé to Cut 16,000 Jobs as New CEO Lifts Savings Target After Q3 Beat

Nestlé casts the overhaul as a push for volume-led growth through tighter costs, greater automation, and sharper portfolio focus.

A picture taken on February 21, 2024 show the logo of Swiss food giant Nestle on the company's headquarters in Vevey, western Switzerland.
An employee monitors cartons of Chuckie, a Nestle SA chocolate flavored milk drink, moving along a conveyor at the company's factory in Batangas province, the Philippines, on Tuesday, April 2, 2019. Nestle Philippines targets to double production of its chocolate milk brand product with its new 2.8b-peso plant in Batangas province, chairman and CEO Kais Marzouki says. Photographer: Veejay Villafranca/Bloomberg via Getty Images
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Nestlé, the world's largest food company, will reduce its global workforce by 6% in the next two years.

Overview

  • Reductions total 16,000 roles over two years, including about 12,000 white‑collar positions and 4,000 in manufacturing and supply chain, roughly 6% of the workforce.
  • Cost‑saving target rises to 3 billion Swiss francs by end‑2027, with the company highlighting operational simplification, shared services, and increased automation.
  • Quarterly update showed 4.3% organic sales growth and a 1.5% rise in real internal growth, beating expectations and signaling early traction on volumes.
  • Shares jumped around 8% after the announcement, as investors welcomed clearer cost discipline and a reinforced focus on performance metrics.
  • Leadership turbulence set the backdrop, with Philipp Navratil replacing Laurent Freixe and Pablo Isla becoming chair, while detailed country timelines and employee support plans remain undisclosed.