Nestlé will eliminate 16,000 jobs worldwide over the next two years as the Swiss food giant intensifies efforts to revive profitability and streamline operations.
The company, which makes Nescafé, Purina pet food and KitKat, said on Thursday that the layoffs form part of a campaign to achieve 3 billion Swiss francs (£3.2 billion) in savings by the end of 2026. The revised target marks an increase from the previously announced 2.5 billion francs.
According to the Wall Street Journal, Nestlé plans to cut 12,000 white-collar roles across multiple markets, alongside 4,000 positions in manufacturing and supply chain productivity initiatives. Management expects the cuts to generate annual savings of 1 billion francs by the end of next year.
“The world is changing, and Nestlé needs to change faster,” said Philipp Navratil, the company’s newly appointed chief executive. Shares rose nearly 8 per cent in Zurich following the announcement, signalling investor approval of the accelerated restructuring.
The shake-up comes after a period of turbulence at the Vevey-based group. In September, Nestlé dismissed chief executive Laurent Freixe following an internal probe into an undisclosed relationship with a direct subordinate. Freixe, who had held the post for only a year, was swiftly replaced by Navratil, a veteran of the business. Chairman Paul Bulcke also stepped down ahead of schedule, underscoring the depth of the leadership transition.
Like its peers in the global food sector, Nestlé has been squeezed by rising commodity costs and trade headwinds. The company said in July that price increases had partly offset surging coffee and cocoa expenses. But analysts note that persistent inflation, shifting consumer habits and margin pressures have forced large consumer goods firms to rethink cost structures.
Nestlé’s move places it among the most aggressive job-cutting programmes in Europe this year and highlights the scale of restructuring under way across multinational staples producers. While the short-term boost to profitability is clear, industry watchers will be looking for signs of whether the company can sustain growth while reducing headcount at such pace.
Navratil framed the cuts as a reset for the world’s largest food group. “This is about building an organisation that can move with agility, innovate faster and serve consumers better,” he said.
For Nestlé, the test now is whether a leaner operation can deliver the balance between efficiency and resilience that markets demand. With leadership changes still settling, the coming year will reveal how effectively the group can execute its ambitious transformation.