Nestlé announces substantial job cuts to speed up growth
Nestlé, the world’s largest food and beverage company, said it will cut about 16,000 jobs over the next two years as part of a broader push to reduce costs and accelerate sales growth. The plan includes roughly 12,000 positions in white-collar professional roles and about 4,000 in manufacturing and supply chain, representing close to 6% of the group’s global workforce. The aim is to free up cash to fund investments and raise profitability in a period of financial pressure and shifting consumer demand.
New chief executive Philipp Navratil framed the move as a necessary adaptation to a changing global market. “The world is changing and Nestlé needs to change faster,” he said. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”
Navratil, who assumed the helm after the departure of his predecessor, signaled a sharper, more aggressive stance on cost control and investment. He is accelerating the cost-saving goals that had been set by former leadership, with a target to lift savings to SFr3 billion by 2027, up from the earlier target of SFr2.5 billion. The move comes amid broader upheaval at Nestlé, including the firing of Laurent Freixe for failing to disclose a relationship with a subordinate and the resignation of the chairman shortly thereafter, both developments that unsettled the company’s governance and growth plans.
“We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation,” Navratil said. “We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.”
The staffing cuts are paired with a plan to streamline operations and reallocate resources toward higher-potential brands and markets. Nestlé executives have underscored the need to act decisively to improve margins and strengthen financial flexibility as the company faces rising input costs and currency headwinds.
Financial results and regional performance
In the first nine months of the year, Nestlé reported a 1.9% year-on-year decline in sales to SFr65.9 billion. The drop was largely attributed to negative foreign exchange impacts of about 5.4%. On an organic basis, however, Nestlé managed to post 3.3% growth, signaling that pricing power and product mix improvements were helping offset currency losses. The company attributed higher sales in part to inflation-driven price increases in several markets, including notable gains in coffee and confectionery lines where Nestlé maintains iconic brands such as Nespresso and KitKat.
Geographically, organic growth was positive across regions, with emerging markets expanding around 5.2% and developed markets around 2.1%. Executives stressed that inflationary pressures and input costs, notably for coffee and cocoa, continue to shape pricing and product mix decisions. The sales mix is increasingly driven by premium and value-added products that can command price resilience in a volatile environment.
Market reaction and analyst perspective
Analysts have described Navratil’s approach as a departure from what some viewed as incremental cost controls in the past. A consumer staples analyst commented that the new leadership signals a willingness to act decisively to reverse a slide in performance and regain momentum. While cutting jobs is painful, it is presented as a prerequisite for restoring Nestlé’s growth trajectory and cash generation, enabling the company to invest at scale in high-potential opportunities.
Going forward, Nestlé will need to balance cost discipline with continued investment in core brands, product innovation, and geographic expansion to sustain revenue growth in an increasingly competitive landscape. Navratil’s leadership will be closely watched as the company navigates foreign exchange volatility, input-cost pressures, and evolving consumer preferences while pursuing a sharper, more organized path to profitability and shareholder value.
