Global Workforce Reduction Announced
Nestlé, the world's largest packaged food company, announced on October 16, 2025, its intention to cut 16,000 jobs globally over the next two years. This significant workforce reduction, which amounts to approximately 6% of the company's total employees, is a key component of a broad restructuring initiative spearheaded by its new Chief Executive Officer, Philipp Navratil. The announcement was made from the company's headquarters in Switzerland.
The cuts are designed to enhance operational efficiency, reduce costs, and accelerate the company's strategic turnaround. Navratil, who assumed the CEO role in early September 2025, stated, 'The world is changing, and Nestlé needs to change faster.' He added that this 'will include making hard but necessary decisions to reduce headcount over the next two years.'
Restructuring Details and Financial Targets
The planned job eliminations will affect various segments of the company's global operations. Approximately 12,000 of the positions to be cut are white-collar or office-based professional roles, while an additional 4,000 jobs will be in manufacturing and the supply chain.
As part of this restructuring, Nestlé has raised its cost-saving target to 3 billion Swiss francs (approximately $3.7 billion USD) by the end of 2027, an increase from its previous goal of 2.5 billion francs. The company anticipates these measures will generate annual savings of 1 billion Swiss francs.
Leadership Changes and Market Reaction
The job cut announcement follows a period of significant leadership changes at Nestlé. Philipp Navratil's appointment as CEO came after the dismissal of his predecessor, Laurent Freixe, in September 2025, due to an undisclosed romantic relationship with a subordinate. Additionally, Chairman Paul Bulcke stepped down earlier than planned, with former Inditex CEO Pablo Isla taking his place.
Despite the impending layoffs, Nestlé's shares saw a positive reaction, surging by more than 8% following the announcement. This indicates investor optimism regarding the company's new strategic direction. The restructuring comes as Nestlé reported nine-month sales down by 1.9% to 65.9 billion Swiss francs, although organic sales growth for the first nine months of 2025 was 3.3%, primarily driven by its coffee and confectionery segments.
Impact and Future Outlook
The exact regional impact of the job cuts is yet to be fully detailed, though it is expected to vary by region and will involve consultation processes where applicable. Unions in countries like Britain are already anticipating an impact on their members.
Navratil emphasized that the restructuring is crucial for Nestlé to remain competitive in a rapidly evolving global market, stating, 'We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation.' The company aims to simplify its organization, automate processes, and reallocate resources towards higher-return businesses.
5 Comments
Rotfront
Easy to cut jobs from a Swiss HQ. Real people are losing their livelihoods.
Matzomaster
Where's the corporate responsibility? This is heartless.
Karamba
The article points to strategic turnaround and innovation as goals, which are positive. However, it's hard to reconcile these aspirations with such a large-scale displacement of employees without more details on their transition plans.
Muchacho
While cost-cutting is often necessary for large corporations to remain competitive, the human cost of 16,000 job losses is immense. I hope they provide adequate support for those affected.
Coccinella
Improving operational efficiency is a valid business objective, especially with declining sales in some areas. But the emphasis on automation and cost reduction might overlook the value of experienced human capital.