Nestlé will cut 16,000 jobs worldwide over the next two years as new chief executive Philipp Navratil pushes to cut costs and boost sales. The layoffs — about 6% of the global workforce — include 12,000 white-collar roles and 4,000 in manufacturing and supply chains.
“The world is changing and Nestlé needs to change faster,” Navratil said, pledging to handle the cuts “with respect and transparency.” The company aims to save 3 billion Swiss francs (£2.8 billion) by 2027, up from its previous 2.5 billion target.
Navratil took over last month after former CEO Laurent Freixe was dismissed for failing to disclose a workplace relationship. He has vowed to “drive innovation” and build a “performance-driven culture” to regain market share.
Nestlé employs about 4,200 people in the UK but has not confirmed where job cuts will occur. The company plans to increase automation and efficiency across operations.
In the first nine months of the year, sales fell 1.9% to 65.9 billion Swiss francs, though organic growth rose 3.3%. Inflation and rising coffee and cocoa costs drove most of the gains.
Analyst Chris Beckett said Navratil’s actions show it “won’t be business as usual” at Nestlé, though the company remains “a work in progress.”
