Nestlé said on October 16, 2025 it will eliminate 16,000 jobs globally over the next two years, about 6% of its workforce. The plan includes 12,000 white-collar roles and about 4,000 positions in manufacturing and supply chain. The move is part of a wider turnaround effort launched by new CEO Philipp Navratil.
The company also raised its cost-saving target to CHF 3 billion by 2027, up from CHF 2.5 billion previously, citing the need to sharpen execution and free up funds for growth.
Leadership shake-up frames the pivot
Navratil took over as CEO in September 2025, succeeding Laurent Freixe, who was dismissed after an internal conduct investigation. Nestlé’s board changes continued with Pablo Isla becoming chairman, following Paul Bulcke’s early departure from the board effective October 1, 2025.
These governance moves aim to stabilize leadership as the company accelerates portfolio and efficiency reviews. Analysts expect tighter capital allocation and potential divestitures to reduce leverage.
Trading update and market reaction
Despite disruption, Nestlé’s latest update showed organic growth in the third quarter and a pickup in real internal growth, even as reported sales for the first nine months were pressured by currency effects. Shares rose on the announcement as investors welcomed the stronger savings target and clearer execution plan.
Management reiterated focus on categories with pricing power and brand strength. Coffee and confectionery were cited as relative bright spots, while performance in parts of Asia lagged.
What changes for employees and operations
Nestlé said reductions will roll out over two years, with a majority in corporate and administrative functions and a smaller portion tied to network optimization in factories and logistics. The company indicated it would follow consultation processes where required and invest in transition support.
At the same time, the group is refocusing spending on innovation, brand support, and selective capacity where demand is resilient, aiming to balance margin improvement with long-term growth.
