Nestle CEO Philipp Navratil announced plans on Thursday to cut 16,000 jobs globally by 2027. The layoffs represent about 5.8% of the company’s 277,000 employees, according to Reuters.
Navratil revealed that Nestle has raised its cost-saving target from 2.5 billion to 3 billion Swiss francs ($3.77 billion) by 2027. He stated, “Nestle needs to change more quickly because the world is changing.”
The announcement follows a period of leadership turbulencebat Nestle. Navratil became CEO after Laurent Freixe was dismissed in September for an undisclosed relationship with a direct report. Following the leadership change, Nestle shares jumped 8% in early trading.
Navratil explained that 12,000 white-collar jobs will be cut within two years as part of a company-wide efficiency push. Another 4,000 roles will be removed from existing operations in manufacturing and supply chains.
Nestle, the Swiss food giant behind KitKat, Nespresso, and Maggi, faces growing U.S. import duties, rising debt, and slowing sales growth. The company is under intense investor pressure to reverse its declining share price.
Analysts at Bernstein described the large-scale Nestle job cuts as a “significant surprise” noting that the company’s strong quarterly results“add fuel to the turnaround fire.”
Real internal growth (RIG), which measures sales volumes, rose by 1.5% in the third quarter; surpassing analysts’ projections of 0.3%. This gives Navratil more room to prove himself after his sudden promotion.
Philipp Navratil emphasized his commitment to performance-driven growth. “We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” he said.
Nestle stated that it is reviewing its luxury beverage, water, and supplement brands, focusing on higher-margin businesses. The company maintained its 2025 outlook, predicting organic sales growth stronger than in 2024.
Nestle also expects its underlying trading operating profit margin to reach at least 16% in 2025 and 17% in the medium term.
