Nestlé will eliminate 16,000 jobs worldwide over the next two years as new chief executive Philipp Navratil launches a major cost-cutting drive to boost growth. 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 reductions “with respect and transparency.”
The maker of KitKat and Nescafé aims to save 3 billion Swiss francs (£2.8 billion) by 2027, up from a previous goal of 2.5 billion. The restructuring follows leadership turmoil after the firing of former CEO Laurent Freixe last month.
Nestlé employs around 4,200 people in the UK but has not confirmed where the cuts will fall. Increased automation is expected to play a major role.
The announcement came as the company reported a 1.9% fall in reported sales to 65.9 billion francs for the first nine months of the year, though organic growth rose 3.3%. Inflation and rising coffee and cocoa costs fueled price increases, while growth was strongest in coffee and confectionery.
Analyst Chris Beckett said Navratil’s bold moves show “it won’t be business as usual” at Nestlé, as the company pushes to regain its former momentum.
