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10h ago

Nestlé to Eliminate 16,000 Jobs as New CEO Accelerates Turnaround

Investors lifted the stock after Nestlé raised its savings goal to CHF3 billion through 2027.

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
A picture taken on February 21, 2024 show the logo of Swiss food giant Nestle on the company's headquarters in Vevey, western Switzerland.
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Overview

  • The company will remove about 6% of its workforce over two years, including 12,000 white‑collar roles and 4,000 positions in manufacturing and the supply chain.
  • Management said the white‑collar reductions are expected to generate roughly CHF1 billion in annual savings within the broader CHF3 billion cost‑cutting program.
  • Third‑quarter real internal growth rose 1.5%, beating forecasts, with organic sales up 4.3% for the quarter and 3.3% for the first nine months despite reported sales falling 1.9% to CHF65.9 billion on currency effects.
  • Shares jumped as much as about 8% after the results and restructuring plan signaled faster execution to restore growth and margins.
  • The reset follows a leadership shake‑up that installed Philipp Navratil as CEO and Pablo Isla as chair, with the company emphasizing efficiency, automation and a tougher performance culture.