Nestlé SA is planning to cut around 16,000 jobs globally as part of a two-year restructuring effort led by its new Chief Executive Officer, Philipp Navratil.
The layoffs, representing roughly 6% of the company’s workforce, Bloomberg reports, come as the Swiss food giant aims to adapt to shifting consumer habits, rising costs, and growing competition across its key markets.
The move marks one of the biggest workforce reductions in Nestlé’s history and follows an unexpected leadership shake-up that disrupted its usually stable corporate hierarchy.
New leadership reshapes Nestlé’s direction
According to Bloomberg, Philipp Navratil, a 20-year Nestlé veteran and former head of Nespresso, was appointed CEO last month after the abrupt removal of Laurent Freixe, who was dismissed over a personal conduct investigation.
The leadership change also prompted Chairman Paul Bulcke to step down earlier than planned, with former Inditex SA CEO Pablo Isla taking over the role.
The new management faces the dual challenge of restoring investor confidence and overhauling internal operations. Nestlé, known for products such as KitKat, Nespresso, and Purina, has long maintained a reputation for conservative management and steady growth.
However, recent governance controversies and shifting consumer demands have pressured the company to modernise its approach.
Cost savings target raised to 3 billion francs
As part of its broader turnaround strategy, Nestlé has increased its cost-saving target to 3 billion Swiss francs ($3.7 billion) by 2027, up from the previous goal of 2.5 billion francs.
Bloomberg reports that the company said the savings will come from operational streamlining, digital transformation, and efficiency improvements across production and logistics.
The cost-cutting announcement coincided with the release of stronger-than-expected third-quarter results, which showed higher sales volumes and prices.
Analysts believe these results indicate that Nestlé’s pricing strategy and premiumisation efforts are beginning to offset inflationary pressures and supply chain challenges.
Global restructuring amid changing consumer landscape
Navratil’s restructuring plan reflects the company’s urgent need to adapt to rapidly evolving market conditions. Consumers are increasingly turning to healthier, sustainable, and plant-based products, while digital retail and supply disruptions have reshaped traditional food distribution models.
As per Bloomberg, the CEO stated that “Nestlé needs to change faster” to meet these new challenges. The company’s transformation will likely involve divesting non-core assets, realigning product portfolios, and strengthening its presence in emerging markets.
The shift is also expected to accelerate investment in automation and AI to enhance manufacturing and supply chain efficiency.
A critical phase for Nestlé’s global ambitions
With more than 270,000 employees worldwide, Nestlé’s job cuts signal a strategic reset rather than a short-term cost fix.
The new leadership duo — Navratil and Isla — must balance the need for operational efficiency with efforts to rebuild trust after internal scandals and ensure sustainable growth across its vast portfolio.
While Nestlé’s fundamentals remain strong, the coming months will be critical in determining whether the company can regain its historic stability while embracing a faster, more agile operating model fit for a modern global food industry.
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