Nestlé, the world’s largest food and beverage company, has announced plans to cut 16,000 jobs globally over the next two years as part of a massive restructuring and cost-saving initiative. The move marks one of the most significant workforce reductions in the company’s history.
Under the leadership of its newly appointed CEO Philipp Navratil, Nestlé is intensifying its “Fuel for Growth” program, which focuses on streamlining operations, improving efficiency, and reallocating resources toward higher-growth and higher-margin segments.
The company aims to achieve 3 billion Swiss francs in cost savings by 2027, up from its previous target of 2.5 billion.
According to Nestlé, 12,000 of the affected positions will come from white-collar and office roles, while 4,000 will be from manufacturing, supply chain, and logistics. The cuts represent approximately 6% of Nestlé’s global workforce of 277,000 employees.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount,”
— Philipp Navratil, CEO, Nestlé
The restructuring comes amid leadership changes following the dismissal of former CEO Laurent Freixe in September after he failed to disclose a personal relationship with a subordinate. Soon after, Chairman Paul Bulcke also stepped down, signaling a new chapter for the Swiss food giant.
Despite internal turbulence, Nestlé reported 1.5% real internal growth (RIG) in the third quarter, surpassing market expectations. However, headline sales fell 1.9%, largely due to unfavorable currency exchange rates.
Analysts describe the decision as a bold but necessary move to restore investor confidence and modernize operations in a changing global market.
Nestlé’s transformation efforts are expected to reshape its structure significantly, though the short-term impact on employees and operations could be considerable.
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