Nestle to Cut 16,000 Jobs as New CEO Philipp Navratil Pushes Aggressive Overhaul

Nestlé SA plans to cut 16,000 jobs worldwide, about 6% of its workforce, as new Chief Executive Officer Philipp Navratil moves swiftly to reshape the Swiss food giant and restore investor confidence after a turbulent leadership transition, according to a report by Bloomberg

The layoffs, which will unfold over the next two years, form part of a plan to deliver 3 billion Swiss francs ($3.7 billion) in cost savings by 2027 — up from an earlier target of 2.5 billion francs. About 12,000 of the affected roles are white-collar positions, with the remaining 4,000 from manufacturing and supply chain operations.

“The world is changing, and Nestlé needs to change faster,” Navratil said in a statement. “This will include making hard but necessary decisions to reduce headcount.”

Nestlé’s shares surged as much as 8% in Swiss trading — the steepest rise since 2008 — after the company reported a 4.3% increase in third-quarter sales, driven by higher prices and a rebound in real internal growth. Analysts said the results could help partly rebuild investor trust that had wavered amid governance issues earlier this year.

Also Read: Nestlé Appoints Nespresso Boss Philipp Navratil as CEO After Laurent Freixe’s Shock Exit Over Workplace Affair | Republic World

Navratil, a Nestlé veteran who took over in September after the dismissal of Laurent Freixe for concealing a workplace relationship, has vowed to maintain the company’s core strategy: investing in bigger product bets, increasing advertising spends, and exiting underperforming businesses.

In addition to the workforce reduction, Navratil said Nestlé would continue evaluating its portfolio, including possible divestments of struggling brands. He emphasized a renewed performance-driven culture, saying, “We will be ruthless in assessing our people — everyone will be measured by the same key performance indicators.”

The leadership shake-up also saw former Inditex SA CEO Pablo Isla replace Chairman Paul Bulcke ahead of schedule. Analysts welcomed Navratil’s assertive tone, with RBC Capital Markets’ James Edwardes Jones noting that the CEO’s focus on growth and accountability “signals a more ambitious approach than before.”

Despite recent internal upheaval, Nestlé’s turnaround plan — anchored in tighter cost controls and sharper execution — appears to have struck the right chord with markets. As Navratil put it, “This is about building a Nestlé that wins again.”