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Global consumer goods leader the Swiss conglomerate stated it will cut sixteen thousand jobs within the coming 24 months, as its new CEO Philipp Navratil advances a plan to prioritize products offering the “highest potential returns”.

This multinational corporation must “adapt more quickly” to remain competitive in a changing world and adopt a “results-oriented culture” that refuses to tolerate losing market share, according to the CEO.

He replaced former CEO Laurent Freixe, who was let go in the ninth month.

The layoff announcement were disclosed on Thursday as the corporation shared stronger sales figures for the initial three quarters of 2025, with expanded sales across its primary segments, encompassing beverages and confectionery.

Globally dominant packaged food and drink corporation, Nestlé owns numerous product lines, including well-known names in coffee and snacks.

Nestlé intends to eliminate twelve thousand administrative roles in addition to 4,000 additional positions across the board over the coming 24 months, it said in a statement.

The lay-offs will cut costs by the food giant about CHF 1 billion per annum as part of an ongoing cost-savings effort, it stated.

Nestlé's share price increased by more than seven percent soon after its quarterly update and job cuts were announced.

Mr Navratil said: “We are fostering a culture that welcomes a results-driven attitude, that does not accept competitive setbacks, and where winning is rewarded... The marketplace is evolving, and the company requires accelerated transformation.”

This transformation would include “difficult yet essential choices to trim the workforce,” he added.

Equity analyst Diana Radu stated the announcement signalled that the new CEO wants to “bring greater transparency to areas that were once ambiguous in its expense reduction initiatives.”

The job cuts, she noted, seem to be an effort to “adjust outlooks and restore shareholder trust through concrete measures.”

The former CEO was dismissed by Nestlé in the start of last fall subsequent to an inquiry into whistleblower allegations that he failed to report a private liaison with a immediate staff member.

The former board leader Paul Bulcke accelerated his departure date and stepped down in the same month.

It was reported at the period that investors attributed responsibility to Mr Bulcke for the company's ongoing problems.

In the prior year, an investigation found Nestlé baby food products marketed in low- and middle-income countries contained excessive amounts of sugar.

The research, carried out by advocacy groups, established that in several situations, the equivalent goods available in affluent markets had no added sugar.

• Nestlé operates a wide array of labels internationally.
• Layoffs will affect 16,000 employees over the next two years.
• Cost reductions are projected to reach 1bn SFr annually.
• Equity climbed significantly post the update.