Nestlé will eliminate 16,000 jobs over the next two years — nearly 6% of its global workforce — as new CEO Philipp Navratil accelerates cost-cutting and restructuring efforts. About 12,000 white-collar and 4,000 manufacturing roles will go as the company aims to save 3 billion Swiss francs (£2.8 billion) by 2027.
“The world is changing and Nestlé needs to change faster,” Navratil said, pledging to make the cuts “with respect and transparency.”
Navratil took over after the dismissal of former CEO Laurent Freixe and has vowed to revive growth at the maker of KitKat, Nescafé, and Purina. The company will boost automation and focus investment on its highest-return businesses.
Nestlé reported a 1.9% fall in sales to 65.9 billion francs for the first nine months of the year, mainly due to currency pressures, though organic growth reached 3.3%. Inflation-driven price rises and strong coffee and confectionery sales led the way, with emerging markets up 5.2% and developed markets 2.1%.
Analyst Chris Beckett said Navratil’s early actions show “it will not be business as usual” as he moves to restore Nestlé’s market strength.
