Nestle Announces Major Global Restructuring: 16,000 Jobs to Be Cut
Swiss FMCG giant Nestlé has revealed plans to eliminate approximately 16,000 positions worldwide over the next two years, representing about 6% of its global workforce. The announcement comes shortly after new CEO Philipp Navratil took leadership, signaling a significant acceleration of the company’s transformation efforts.
Key Takeaways
- Nestlé to cut 16,000 jobs globally over two years
- 12,000 white-collar and 4,000 manufacturing/supply chain roles affected
- Expected savings of 1 billion Swiss francs, double initial projections
- Global workforce across all operating countries impacted
Job Cut Distribution
The restructuring will disproportionately affect white-collar positions, with 12,000 office roles being eliminated compared to 4,000 positions in manufacturing, supply chain, and other operational areas. This strategic shift reflects Nestlé’s renewed focus on high-return products and operational efficiency.
CEO’s Strategic Vision
In his first major announcement since taking charge, CEO Philipp Navratil stated, “The world is changing, and Nestle needs to change faster.” He emphasized that this transformation “will include making hard but necessary decisions to reduce headcount” as part of the company’s broader turnaround strategy.
Financial Context
The layoff announcement coincided with Nestlé’s nine-month financial results, which showed a 1.9% decline in sales to 65.9 billion Swiss francs (approximately USD 83 billion). Separately, Nestle India reported a 17% drop in consolidated net profit for the July-September quarter, though operational revenue grew by 11% year-on-year to INR 5,643 crore.
The substantial job cuts, expected to generate savings of 1 billion Swiss francs, represent a decisive move by Navratil to streamline operations and position the company for future growth in an evolving market landscape.
