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Nestlé is set to reduce its workforce by 16,000 positions, representing approximately 6% of its global staff, as new CEO Philipp Navratil accelerates a strategic turnaround for the Swiss food giant.


The company announced these cuts will take place over the next two years, coinciding with a heightened focus on cost efficiency and operational effectiveness.


In a statement released today (Thursday 16 October 2025), Navratil highlighted the need for rapid adaptation in a changing market landscape.


"The world is changing, and Nestlé needs to change faster," Navratil commented. "This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency."


This decision comes as part of a broader initiative to enhance profitability, with the company raising its cost-saving target from 2.5 billion Swiss francs (approx. $2.8 billion) to 3 billion francs (approx. $3.7 billion) by the end of 2027.


Navratil, who previously led the Nespresso division, was appointed CEO last month following the ousting of Laurent Freixe, who was removed amid a scandal involving personal conduct.


The leadership shakeup also saw chairman Paul Bulcke resign earlier than planned, with former Inditex CEO Pablo Isla stepping in as his successor. This transition has created a period of uncertainty within the company, known for its traditionally stable corporate culture.


The new leadership faces the dual challenge of reviving volume growth while addressing governance issues that have surfaced in recent months.


Although Navratil has indicated he will largely continue Freixe’s strategic direction, stakeholders are keenly watching for any additional insights into his plans for revitalising Nestlé's brand portfolio and market presence.


Despite the impending job cuts, Nestlé reported stronger-than-expected third-quarter sales, attributed to higher prices and increased product volumes.


This performance suggests that the company is experiencing a rebound in demand, albeit alongside significant operational restructuring.

Nestlé announces $3.7bn cost-cutting strategy and 16,000 job cuts

Siân Yates

16 October 2025

Nestlé announces $3.7bn cost-cutting strategy and 16,000 job cuts

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