Nestlé to cut 16,000 jobs worldwide in major restructuring move
Food and beverage company Nestlé has announced a global workforce reduction of 16,000 positions over the next two years. This includes the elimination of 12,000 white-collar jobs in management and office roles, alongside 4,000 roles in manufacturing,…
Food and beverage company Nestlé has announced a global workforce reduction of 16,000 positions over the next two years. This includes the elimination of 12,000 white-collar jobs in management and office roles, alongside 4,000 roles in manufacturing, logistics, and supply chain departments.
This restructuring initiative aims to streamline operations and focus investments on high-performing brands and products with strong potential returns, including coffee, confectionery, and premium goods. The company plans to finalize strategic portfolio reviews of its water and premium beverage businesses, as well as its vitamins and supplements brands.
Nestlé's restructuring is designed to enhance profitability and efficiency amidst economic pressures. The company's share price has declined by approximately 35% since 2022, while sales growth increased by only 2.2% in 2024. However, this figure improved to 3.3% in the first nine months of the current year. Net sales for the first nine months of 2025 amounted to CHF 65.9 billion (€70.96 billion), reflecting a year-on-year decrease of 1.9% due to exchange rate impacts.
External cost pressures and trade barriers, such as a 39% US import tariff on Swiss goods, continue to affect profit margins. Nonetheless, the company anticipates that the job cuts will yield annual savings of approximately 1 billion Swiss francs, contributing to a total cost-savings target of 3 billion Swiss francs by the end of 2027.
Food and beverage company Nestlé has announced a global workforce reduction of 16,000 positions over the next two years.
Recent management changes have also occurred at Nestlé. Former CEO Laurent Freixe was dismissed in September for violating the company's code of conduct. Subsequently, Paul Bulcke resigned as chairman earlier than planned, and Pablo Isla, former CEO of Inditex, was appointed as his successor.
Following Freixe's departure, Philipp Navratil was named CEO and initiated the restructuring drive, emphasizing the need for Nestlé to adapt rapidly to the evolving global market. Despite these changes, the company reported stronger-than-expected financial results for the first nine months of 2025, with organic sales growth driven by price increases in key categories such as Nescafé coffee, KitKat chocolate, and Maggi cooking products.
In the third quarter of 2025, Nestlé achieved a 1.5% increase in real internal growth, surpassing analyst expectations of 0.3%. Investors reacted positively to the restructuring announcement, with the company's stock price rising by over 8% by midday Thursday.
Looking forward, Nestlé projects stronger organic sales growth compared to 2024. The company has reaffirmed its full-year guidance, anticipating ongoing sales growth improvement with an operating margin of 16% or higher. The stock continues to trade at a discount relative to the wider sector, reflecting the ongoing turnaround efforts.
Based on reporting by Africanews.