Nestle job cuts
Table of Contents
- Nestlé’s Massive Job Cuts Announced
- Why Nestlé is Cutting Jobs Now
- Targeted Savings and Future Goals
- Leadership Shake-Up and Corporate Scandal
- Philipp Navratil’s New Growth Strategy
- Impact on Employees and Global Operations
- Analyst Reactions and Market Response
- Conclusion
Nestlé’s Massive Job Cuts Announced
Nestle job cuts SA, the Swiss multinational behind Nespresso, Kit Kat, Perrier, and Purina, has confirmed plans to cut 16,000 jobs globally over the next two years. The announcement marks one of the company’s largest restructurings in decades, following the appointment of its new CEO, Philipp Navratil, in September 2025.
Why Nestlé is Cutting Jobs Now
According to Navratil, “The world is changing, and Nestlé needs to change faster.” The decision to downsize is part of a larger effort to streamline operations and reduce headcount amid rising costs and sluggish sales growth. About 12,000 of the affected roles are white-collar positions worldwide, expected to save roughly one billion Swiss francs.
Targeted Savings and Future Goals
Nestlé has increased its savings target to three billion Swiss francs by 2027, up from the previous 2.5 billion. This includes cutting another 4,000 jobs in production and supply chain divisions already under review. Despite the restructuring, the company recorded sales of 65.9 billion francs ($83 billion) for the first nine months of 2025 — a 1.9 percent decline from the same period last year.
Leadership Shake-Up and Corporate Scandal
The job cuts follow a turbulent period for Nestlé’s leadership. The previous CEO was dismissed in September over an office relationship scandal, and the company’s chairman stepped down soon after. In addition, Nestlé has faced reputational challenges from a bottled-water scandal in France during 2024, forcing the new leadership to restore trust among consumers and investors.
Philipp Navratil’s New Growth Strategy
Navratil’s vision for Nestlé focuses on three pillars: cost efficiency, portfolio optimization, and investment in high-margin categories like nutrition and pet care. The company intends to divest from low-performing units while boosting investment in innovation and digital supply-chain automation.
Impact on Employees and Global Operations
While the company claims that most of the cuts will come from corporate and administrative divisions, labor unions across Europe and Asia have raised concerns about the impact on workers. Nestlé’s offices in India, Brazil, and the United States may see significant changes in management and regional operations.
Analyst Reactions and Market Response
Market analysts remain cautiously optimistic. Although Nestlé’s organic sales grew by 3.3 percent — driven mainly by a 2.8 percent price increase — the company’s volume growth stagnated. Experts believe the current restructuring is essential to achieve long-term profitability. Shares in Nestlé rose slightly on the announcement, indicating investor confidence in Navratil’s leadership.
Conclusion
Nestlé’s decision to cut 16,000 jobs globally underscores its determination to adapt to a changing market landscape. Under Philipp Navratil, the company is betting on a leaner, more agile organization to drive sales growth and sustain its legacy as the world’s largest food and beverage brand.
The News Update | Published on October 16, 2025
