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Global consumer goods leader the Swiss conglomerate announced it will remove 16,000 roles over the next two years, as the recently appointed chief executive Philipp Navratil drives a strategy to focus on products offering the “highest potential returns”.

This multinational corporation has to “adapt more quickly” to remain competitive in a changing world and implement a “results-oriented culture” that does not accept declining competitive position, said Mr Navratil.

His appointment followed ex-chief executive Laurent Freixe, who was dismissed in September.

These workforce reductions were revealed on the fourth weekday as Nestlé reported better performance metrics for the first three-quarters of 2025, with expanded sales across its major categories, encompassing coffee and sweets.

The biggest consumer packaged goods company, Nestlé operates hundreds of product lines, including its coffee, chocolate, and food brands.

Nestlé plans to get rid of twelve thousand administrative positions on top of 4,000 additional positions throughout the organization within the next two years, it said in a statement.

The workforce reduction will save the corporation about CHF 1 billion annually as within an ongoing cost-savings effort, it confirmed.

The company's stock value increased by more than seven percent following its trading update and job cuts were made public.

Mr Navratil commented: “We are building a corporate environment that embraces a achievement-oriented approach, that does not accept market share declines, and where winning is rewarded... The marketplace is evolving, and Nestlé needs to change faster.”

The restructuring would include “hard but necessary decisions to trim the workforce,” he noted.

Market analyst a financial commentator remarked the report suggested that the new CEO aims to “enhance clarity to aspects that were once ambiguous in the company's efficiency strategy.”

These layoffs, she said, seem to be an effort to “recalibrate projections and rebuild investor confidence through concrete measures.”

The former CEO was dismissed by the company in early September following a probe into whistleblower allegations that he failed to report a private liaison with a direct subordinate.

The former board leader Paul Bulcke moved up his leaving schedule and resigned in the same month.

It was reported at the period that stakeholders attributed responsibility to Mr Bulcke for the company's ongoing problems.

The previous year, an investigation discovered infant nutrition items from the company marketed in developing nations contained unhealthily high levels of added sugars.

The research, conducted by non-profit organizations, established that in many cases, the same products sold in affluent markets had no added sugar.

• The corporation operates hundreds of labels globally.
• Layoffs will impact 16,000 employees throughout the upcoming biennium.
• Cost reductions are anticipated to amount to one billion Swiss francs annually.
• Share price rose seven and a half percent following the news.