Nestle to slash 16,000 jobs globally in strategic shake-up, impacting 6% of workforce

Swiss food giant targets $3 billion in savings by 2027 as CEO seeks to reignite growth

Nestle has announced plans to eliminate 16,000 jobs worldwide over the next two years as part of a sweeping cost-cutting initiative under its new chief executive, Philipp Navratil. The restructuring move, which represents about 6% of the company’s global workforce, was unveiled alongside the release of its latest financial results.

The announcement, made on Thursday, sparked a strong market reaction, with Nestle shares jumping over 8% in morning trading, helping drive Zurich’s stock index to the top of European markets for the day.

Focus on efficiency and recovery

Of the total job reductions, 12,000 will come from office roles, a move that Nestle says will help save 1 billion Swiss francs ($1.26 billion)—double its initial forecast. An additional 4,000 roles are being phased out across its production and supply chain operations.

"The world is changing, and Nestle needs to change faster," said Navratil in a statement, calling the layoffs a “difficult but necessary” part of the company's transformation. He also revealed an updated cost-saving target of 3 billion Swiss francs by 2027, up from a previously announced 2.5 billion.

The job cuts come amid a challenging period for Nestle, whose sales for the first nine months of 2025 dropped 1.9% to 65.9 billion francs. However, organic sales rose 3.3%, largely driven by a 2.8% increase in pricing. Coffee and confectionery products were the biggest contributors to growth, with double-digit price hikes in some markets.

Leadership turmoil and market pressure

Navratil took over in September following a leadership shake-up involving the abrupt exits of both the former CEO and chairman. The company has also faced reputational challenges, including controversy surrounding its bottled water operations in France in 2024.

Despite these setbacks, analysts view the new CEO’s direction positively. “He’s signaling a more aggressive approach,” said Vontobel analyst Jean-Philippe Bertschy.

In a hopeful sign, sales volumes rose by 1.5% in the third quarter—significantly outperforming analyst expectations. Zurich Cantonal Bank’s Patrik Schwendimann said the result reflects early signs of recovery.

Nestle owns more than 2,000 brands, including KitKat, Maggi, Purina, and Nespresso.