Nestle’s Shocking Job Cuts: 16,000 Roles Slashed as New CEO Sparks Big Shakeup
Nestle to Cut 16,000 Jobs in Major Shakeup
Nestle, the world’s largest food and beverage company, announced plans to cut 16,000 jobs over the next two years. This bold move comes as new CEO Philipp Navratil pushes the company to focus more on its highest-return products and accelerate change to stay competitive in a fast-evolving market.
Why Is Nestle Cutting Jobs?
Navratil, who replaced former CEO Laurent Freixe in September, said Nestle needs to adopt a “performance mindset” that doesn’t accept losing market share. He emphasized the company must “change faster” to keep pace with global trends and improve its performance.
The job cuts will include 12,000 white-collar positions and 4,000 other roles across the company. The move is expected to save Nestle about 1 billion Swiss francs (around £940 million) annually, helping the company streamline operations and reduce costs.
What’s Behind the Leadership Change?
Laurent Freixe was dismissed in September after an internal investigation revealed he failed to disclose a romantic relationship with an employee, a violation of company policy. Around the same time, long-time chair Paul Bulcke also stepped down earlier than planned amid criticism from investors over Nestle’s ongoing challenges.
Nestle’s Performance and Future Plans
Despite the job cuts, Nestle reported strong sales growth in the first nine months of 2025, with increased product sales across key categories like coffee and sweets. Brands like Nescafe, KitKat, and Maggi continue to drive revenue for the Swiss giant.
The company aims to focus more on products with the highest potential returns, shedding less profitable lines and improving overall efficiency.
Industry and Investor Reactions
Equity analyst Diana Radu noted that the job cuts signal Navratil’s commitment to transparency and rebuilding investor confidence with clear, measurable actions. Nestle’s shares jumped 7.5% shortly after the announcement, reflecting positive market response.
Controversies and Challenges
Nestle has faced criticism in the past, including a 2024 report revealing high sugar levels in its baby food products sold in low- and middle-income countries—products that were sugar-free in wealthier markets. This controversy adds pressure on the company to improve product quality and corporate responsibility.
What This Means for Employees and Consumers
The layoffs represent a significant shift for Nestle’s workforce and could reshape its corporate culture under Navratil’s leadership. For consumers, the company’s focus on top-performing products may lead to changes in product availability and innovation.
Looking Ahead
With strong sales but fierce competition, Nestle’s job cuts and strategic refocus show how even global giants must adapt quickly to survive and thrive. The next few years will be critical in seeing how the company balances cost-saving with growth and sustainability efforts.