Nestlé Announces 16,000 Job Cuts as New CEO Philipp Navratil Launches Major Restructuring

Nestlé’s Major Move: New CEO Announces 16,000 Job Cuts

Global food giant Nestlé has announced plans to cut around 16,000 jobs worldwide over the next two years as part of a major restructuring effort under its new chief executive, Philipp Navratil.

The decision represents roughly 6% of Nestlé’s global workforce. The company says the move aims to reduce costs, streamline operations, and improve long-term efficiency across its global divisions. About 12,000 of the affected positions are office-based white-collar roles, while 4,000 are expected to come from factories and supply-chain operations.

This announcement comes shortly after Navratil took charge following the dismissal of former CEO Laurent Freixe, who left after a board investigation into misconduct. Navratil called the restructuring a “necessary and transformative step” to restore momentum and strengthen the company’s competitive edge.

“The world is changing rapidly, and Nestlé must adapt at the same pace,”
— Philipp Navratil, Nestlé CEO

As part of the new plan, Nestlé has raised its cost-saving target to 3 billion Swiss francs (up from 2.5 billion) by 2027. The company also intends to review underperforming business units for potential reorganization or divestment.

Despite leadership turbulence, Nestlé’s third-quarter organic growth reached 3.3%, though overall sales fell 1.9%. Following the announcement, Nestlé’s shares rose modestly, signaling investor confidence in Navratil’s turnaround strategy.

Analysts note that while mass layoffs pose social and ethical challenges, the company’s handling of retraining and compensation will be crucial to maintaining its global reputation. The restructuring, they say, is less about cost-cutting alone and more about repositioning Nestlé for future growth, innovation, and profitability.