Nestle Announces Major Restructuring: 16,000 Jobs to Be Cut Globally Under New CEO's Transformation Strategy

Nestle, the Swiss food and beverage conglomerate behind popular brands such as Nespresso, Kit Kat, Perrier, and Purina, has announced plans to eliminate 16,000 positions worldwide within the next two years.

This significant workforce reduction comes as the company embarks on an accelerated transformation strategy under the leadership of newly appointed CEO Philipp Navratil, who assumed his role in early September.

"The world is changing, and Nestle needs to change faster," Navratil stated in the company's official announcement.

He described the widespread job cuts as "hard but necessary decisions to reduce headcount" and rationalize operations amid evolving market dynamics.

The restructuring plan will predominantly affect white-collar positions, with 12,000 of the 16,000 job cuts targeting these roles. Nestle projects that this workforce reduction will generate savings of one billion Swiss francs, doubling their initial cost-saving estimates.

These newly announced layoffs are in addition to 4,000 job reductions already underway in production and supply chain operations.

The company has also raised its total savings target to three billion Swiss francs by the conclusion of 2027, an increase from their previously stated goal of 2.5 billion.

This announcement coincided with the release of Nestle's nine-month financial performance, which revealed a 1.9 percent decrease in sales to 65.9 billion Swiss francs (approximately $83 billion).

Organic sales during this period grew by 3.3 percent, primarily attributed to price increases of 2.8 percent.

Nestle India, the company's Indian subsidiary, also reported a 17 percent year-on-year reduction in consolidated net profit for Q2 FY26, posting earnings of Rs 743 crore according to exchange filings.

Financial analysts have noted that these results reflect both economic challenges and ongoing corporate restructuring initiatives.

Navratil's appointment comes at a particularly challenging period for Nestle. His predecessor was dismissed in September following an office relationship scandal, while the company chairman departed earlier than anticipated.

Further complicating matters, Nestle has been contending with a bottled water controversy in France that emerged in 2024, placing additional pressure on the new leadership to stabilize operations and rebuild investor trust.