Nestle will cut 16,000 jobs under new CEO Philipp Navratil as part of a $3.77 billion cost-saving plan to revive growth and investor confidence.
Nestle announced plans to cut 16,000 jobs worldwide as new CEO Philipp Navratil embarks on a sweeping cost-cutting and efficiency drive aimed at restoring investor confidence. The cuts, representing about 5.8% of Nestle’s 277,000 employees, are part of an expanded savings target of 3 billion Swiss francs ($3.77 billion) by 2027.
“The world is changing, and Nestle needs to change faster,” Navratil said, adding that the company’s focus will be on “fostering a performance mindset.” Most of the reductions will affect 12,000 white-collar positions, with an additional 4,000 jobs to be cut from manufacturing and supply chains.
Nestle’s shares rose 8% in early trading after reporting stronger-than-expected third-quarter sales growth of 4.3%, driven by coffee and confectionery. Analysts at Bernstein said the results “add fuel to the turnaround fire.”
Despite management upheaval, Nestle maintained its 2025 guidance, forecasting operating profit margins at or above 16%.