URGENT UPDATE: Nestlé, the Swiss food giant known for brands like Toll House and Nespresso, just announced it will eliminate 16,000 jobs globally over the next two years. This major decision comes directly from newly appointed CEO Philipp Navratil, who stated the company must adapt faster to a changing world.
In a statement released earlier today, Navratil emphasized the need for “hard but necessary decisions” to streamline operations and reduce headcount. This news arrives as Nestlé reports a 1.9% decline in sales, totaling 65.9 billion Swiss francs (approximately $83 billion) for the first nine months of 2025.
The layoffs will predominantly target 12,000 white-collar jobs, anticipating annual savings of one billion Swiss francs (about $1.25 billion), which is double the initial savings target. This follows the planned cutting of an additional 4,000 jobs in production and supply chain roles. Nestlé is now aiming to enhance its savings goal to three billion Swiss francs (around $3.75 billion) by the end of 2027, up from the previous target of 2.5 billion.
Navratil’s leadership follows a tumultuous period for the company, which included the dismissal of its former CEO over an office relationship and the unexpected departure of its chairman. Financial analysts suggest that Navratil’s strategy focuses on restoring stability after a decline in growth since 2022.
The company has also faced significant challenges, including a scandal related to its bottled water segment that began in France in 2024. Despite these setbacks, organic sales growth during this period reached 3.3%, primarily driven by a 2.8% increase in prices.
As Nestlé embarks on this drastic restructuring, the impact on employees and the broader market is expected to be significant. The urgency of these layoffs underscores the pressures facing multinational corporations in a rapidly changing economic landscape.
What’s next? Watch for further updates as Nestlé navigates this challenging period and implements its ambitious cost-cutting measures. Analysts will be closely monitoring the company’s performance and any additional changes in leadership or strategy in the coming months.
