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

Overview

• The reductions span about 12,000 administrative roles and 4,000 positions in manufacturing and the supply chain.
• The cuts will be phased in over two years, equating to roughly 5.8% of Nestlé’s approximately 277,000 employees.
• Management lifted the cost-savings target to CHF 3 billion by end-2027 and is reviewing the portfolio, with any divestment-related losses excluded from the 16,000 figure.
• Shares in Zurich rose roughly 7.5%–8.9% after the announcement and results showing about 4.3% organic growth in the third quarter despite a 1.9% nine-month sales decline.
• The restructuring follows the September dismissal of CEO Laurent Freixe over a code-of-conduct breach and the early exit of chair Paul Bulcke, with new CEO Philipp Navratil stressing a tougher performance culture.