Fez – Nestlé announced plans to cut 16,000 positions worldwide over the next two years, affecting both corporate and factory roles. About 12,000 cuts will target white-collar jobs in non-manufacturing divisions, while 4,000 roles will be eliminated from manufacturing, supply chain, and logistics functions.
This is one of the most significant workforce reductions in the company’s history. The cuts represent roughly 5.8 percent of Nestlé’s global headcount, which is estimated at around 277,000 employees.
The decision comes as Nestlé raises its cost-reduction goal. Under new CEO Philipp Navratil, the company has increased its target from 2.5 billion Swiss francs to 3 billion Swiss francs by 2027.
Navratil took over following the removal of his predecessor Laurent Freixe, who was dismissed due to an undisclosed relationship with a subordinate. At the same time, chairman Paul Bulcke stepped down and was replaced by Pablo Isla, formerly of Inditex.
Despite the planned cuts, Nestlé’s recent financial performance showed some resilience. In the first nine months of 2025, reported net sales declined 1.9 percent (impacted by currency effects), but organic sales — which exclude currency and acquisitions — grew 3.3 percent. The company also posted a 1.5 percent rise in real internal growth during Q3, a figure that outpaced expectations.
Market reaction was immediate. Nestlé shares jumped nearly 8 percent following the announcement, reflecting investor approval of the bold restructuring.
Navratil has signaled that the cuts are just the beginning of a broader transformation. The company is conducting strategic portfolio reviews, especially in its water, beverage, and vitamin/supplements divisions, with an eye toward divestment or reallocation of resources. He has also emphasized automation and operational efficiency as key tools in reshaping how Nestlé works.
For many employees, the announcement brings uncertainty. Corporate functions will bear the brunt of the cuts, raising concerns about talent retention, institutional knowledge loss, and strategic continuity. Analysts and insiders warn that execution risk is high — balancing cost cuts while preserving core capabilities will make or break this restructuring.
Ultimately, Navratil’s move frames Nestlé’s next chapter. If successful, it could restore profitability and sharpen focus on growth segments. If not, the move may be remembered as a gamble on efficiency over long-term resilience.
