Nestlé will cut 16,000 jobs worldwide over the next two years — nearly 6% of its global workforce — as part of a major restructuring to boost sales and efficiency. The layoffs include 12,000 white-collar and 4,000 manufacturing roles.
“The world is changing and Nestlé needs to change faster,” said new CEO Philipp Navratil, who took over after the dismissal of Laurent Freixe last month. The company aims to save 3 billion Swiss francs (£2.8 billion) by 2027, up from a previous 2.5 billion target, while increasing automation and streamlining operations.
The maker of KitKat, Nescafé, and Purina reported a 1.9% fall in sales to 65.9 billion francs in the first nine months of the year, largely due to currency effects. Organic sales grew 3.3%, led by coffee and confectionery but driven mainly by price increases.
Navratil said Nestlé would “move faster to build growth momentum” and foster a stronger performance culture. Analyst Chris Beckett noted that the CEO’s swift actions show it “won’t be business as usual” for the food giant.
