Nestlé has announced plans to cut 16,000 jobs over the next two years as part of a major restructuring effort aimed at boosting growth and efficiency. The move, which affects nearly 6% of the company’s global workforce, will see 12,000 white-collar roles and 4,000 manufacturing and supply chain positions eliminated.
“The world is changing and Nestlé needs to change faster,” said Philipp Navratil, the company’s new chief executive. “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 replaced Laurent Freixe last month after Freixe was dismissed for failing to disclose a romantic relationship with a subordinate, is accelerating Nestlé’s cost-saving plans. The company now aims to save 3 billion Swiss francs (£2.8 billion) by 2027—up from a previous target of 2.5 billion francs.
The leadership shake-up follows a turbulent period for the Swiss food and beverage giant, which also saw the resignation of its chair, Paul Bulcke. The company has been under pressure to boost sales, reduce debt, and improve operational efficiency amid rising costs and slowing growth.
Nestlé owns some of the world’s most recognizable brands, including KitKat, Nescafé, Häagen-Dazs, Nespresso, and Purina. It employs around 4,200 people in the UK, with offices in Gatwick and a major production facility in York that manufactures KitKats. While Nestlé has not specified where job cuts will occur, it said the reductions will focus on improving efficiency and expanding automation.
The announcement came alongside the company’s latest financial update, which showed sales down 1.9% year-on-year to 65.9 billion Swiss francs for the first nine months of 2025. The decline was largely attributed to negative foreign exchange impacts of 5.4%, while organic growth reached 3.3%.
Navratil said that although recent investments have started to show results, Nestlé must “do more and move faster” to maintain momentum. “We will be bolder in investing at scale and driving innovation,” he said. “We are fostering a culture that embraces performance, doesn’t accept losing market share, and rewards winning.”
The company’s growth was driven mainly by coffee and confectionery sales, which were boosted by inflation-related price increases. All regions recorded organic growth, with emerging markets up 5.2% and developed markets rising 2.1%.
Chris Beckett, a consumer staples analyst at Quilter Cheviot, said Navratil’s approach signals a clear break from the past. “Despite being a lifelong Nestlé employee, he’s showing it won’t be business as usual,” Beckett said. “He’s willing to take drastic action to reverse Nestlé’s recent decline. For now, the company remains a work in progress.”
