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Food and beverage giant the Swiss conglomerate has declared it will eliminate 16,000 positions within the coming 24 months, as its new CEO Philipp Navratil drives a strategy to concentrate on products offering the “greatest profit margins”.

This multinational corporation must “change faster” to remain competitive in a changing world and adopt a “performance mindset” that rejects ceding ground to competitors, according to the CEO.

He took over from ex-chief executive Laurent Freixe, who was dismissed in the ninth month.

These workforce reductions were disclosed on Thursday as Nestlé reported stronger sales figures for the initial three quarters of 2025, with increased revenue across its key product lines, encompassing beverages and confectionery.

Globally dominant food & beverage corporation, this industry leader operates a multitude of labels, including its coffee, chocolate, and food brands.

Nestlé plans to remove 12,000 white collar positions on top of 4,000 other roles company-wide within the next two years, it said in a statement.

The lay-offs will result in savings of the food giant about one billion Swiss francs per annum as a component of an sustained expense reduction program, it confirmed.

The company's stock value increased 7.5% following its quarterly update and layoff announcement were revealed.

The CEO stated: “We are building a corporate environment that adopts a performance mindset, that refuses to tolerate market share declines, and where success is recognized... The world is changing, and we must adapt more rapidly.”

The restructuring would include “tough but required decisions to reduce headcount,” he noted.

Market analyst Diana Radu said the update indicated that Mr Navratil seeks to “enhance clarity to areas that were previously more opaque in Nestlé's cost-saving plans.”

These layoffs, she noted, seem to be an initiative to “recalibrate projections and restore shareholder trust through measurable actions.”

Mr Navratil's predecessor was sacked by the company in early September following a probe into reports from staff that he omitted to reveal a romantic relationship with a junior employee.

Its departing chairman the ex-chairman moved up his exit timeline and left his post in the corresponding timeframe.

Sources indicated at the period that investors blamed the former chairman for the firm's continuing challenges.

The previous year, an study revealed its baby formula and foods sold in low- and middle-income countries had undesirably high quantities of sweeteners.

The research, conducted by non-profit organizations, found that in several situations, the identical items available in wealthy countries had no extra sugars.

• The corporation manages a wide array of labels globally.
• Workforce reductions will impact sixteen thousand staff members over the next two years.
• Cost reductions are anticipated to amount to CHF 1 billion per year.
• Stock value rose significantly after the update.