Kathrine Frich
Nestle has announced plans to eliminate 16,000 jobs over the next two years as part of a major cost-cutting initiative.
The Swiss-based group said the restructuring would help it adapt to a changing global market and develop what it described as a “performance mindset.”
A Changing world
Chief executive Philipp Navratil, who took over last month, said the move would ensure the company remains competitive.
“The world is changing, and Nestle 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.”
Around 12,000 of the roles affected are white-collar positions, many of which will be replaced by automated systems and shared services.
The remaining 4,000 will come from manufacturing and supply chain operations, accounting for roughly six percent of the company’s global workforce.
Cost Savings and Leadership Transition
Nestle said the overhaul is expected to save the company around £940 million annually by 2027.
The firm currently employs about 277,000 people worldwide and owns well-known brands such as KitKat, Nescafé, and Nesquik.
The company’s leadership change in September came after former CEO Laurent Freixe was dismissed following an internal investigation.
Improve overall performance
Mr Navratil said the company would focus on “prioritising the opportunities and businesses with the highest potential returns.” He added:
“The actions we are taking will secure Nestle’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.”
The announcement accompanied a trading update showing sales of £61.5 billion in the first nine months of 2025, a 1.9 percent decline from the same period last year.
Coffee, confectionery, and chocolate products showed the strongest sales growth, with prices rising more than ten percent in several markets.
Investor Reaction and Employee Concerns
While investors welcomed the cost-saving measures, some analysts warned of potential fallout among employees.
Russ Mould, investment director at AJ Bell, said:
“Nestle’s new CEO might have made more enemies than friends since taking the top job in September. [The job cuts] will double previous annual savings targets, but it doesn’t bode well for staff morale.”
The company has not disclosed how the layoffs will affect specific regions, including the UK.
Industry observers say the restructuring signals a wider shift as consumer goods giants adapt to slower growth and rising input costs.
This article is made and published by Kathrine Frich, which may have used AI in the preparation
