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Nestlé to Cut 16,000 Jobs in Two-Year Overhaul, Lifts Savings Goal to CHF 3 Billion

New CEO Philipp Navratil frames the restructuring as a rapid reset to steady the business after a turbulent leadership transition and uneven sales trends.

Overview

  • The plan removes roughly 6% of the workforce worldwide, with about 12,000 corporate roles and 4,000 production and supply-chain positions affected.
  • Nestlé targets annual savings of around CHF 1 billion from the workforce reductions by 2027 as part of the higher CHF 3 billion cost-savings goal.
  • Third-quarter sales rose 4.3%, contrasting with a 1.9% decline for the first nine months to CHF 65.9 billion.
  • Navratil, appointed in September, said the company must change faster and called the job reductions difficult but necessary.
  • The announcement follows the ouster of CEO Laurent Freixe and the early exit of chairman Paul Bulcke, with Pablo Isla now chairing; an analyst said the steps could help rebuild investor confidence.