VEVEY, Switzerland, Oct 17, 2025: Nestlé SA announced Thursday that it will eliminate 16,000 jobs globally over the next two years as part of a broad cost-reduction plan, marking one of the largest workforce restructurings in the company’s history. The decision follows a detailed internal review and comes amid continuing efforts to streamline operations and improve organizational efficiency.
The Swiss food and beverage multinational confirmed that approximately 12,000 of the affected positions will be white-collar roles across management, administration, and other corporate functions. The remaining 4,000 cuts will be spread across manufacturing, logistics, and supply chain divisions. Nestlé has around 270,000 employees worldwide, making the reductions equivalent to roughly 6 percent of its total workforce.
The restructuring announcement coincided with the release of the company’s financial results for the first nine months of 2025. Net sales for the period fell 1.9 percent year-on-year to 65.9 billion Swiss francs ($72 billion), primarily due to foreign exchange impacts. However, organic sales, which exclude currency effects and acquisitions, rose 3.3 percent, supported by price adjustments and stable demand in key categories such as coffee, confectionery, and pet care.
Nestlé reported real internal growth of 1.5 percent for the third quarter, exceeding market expectations. The company’s performance was particularly strong in North America and emerging markets, while Europe saw moderate growth. The updated cost-saving target is now set at 3 billion Swiss francs ($3.3 billion) by the end of 2027, an increase from the previous target of 2.5 billion francs.
Leadership change precedes operational cost-saving measures
Chief Executive Officer Philipp Navratil, who assumed the role following a recent leadership transition, stated that the reduction in roles will be implemented over 24 months. He emphasized that all impacted employees would be supported throughout the transition in compliance with local labor laws. The company noted that each region and market will define its specific implementation plan in accordance with operational needs and legal requirements.
The decision to restructure follows leadership changes earlier this year. Former CEO Laurent Freixe departed in September, and Pablo Isla, former executive at Inditex, was appointed chairman. Nestlé has not linked the job cuts to the management changes but confirmed that the cost-efficiency measures had been under evaluation before the new leadership team was finalized.
Shares of Nestlé rose sharply following the announcement. The stock gained over 7 percent in early trading on the Swiss stock exchange, reflecting investor confidence in the company’s renewed focus on operational discipline and capital allocation. Nestlé, headquartered in Vevey, is the world’s largest food and beverage company, with a portfolio that includes brands such as Nescafé, KitKat, Maggi, and Purina.
Switzerland-based company focuses on efficiency amid change
The company operates in 188 countries and maintains production sites in 85 of them. It has faced growing pressure from shareholders to optimize its business model as global inflation and shifting consumer trends challenge the packaged goods sector. The job reductions will be carried out globally, with details to be determined at the regional level.
Nestlé stated that the company will conduct consultations with employee representatives and unions where applicable and will communicate specific timelines and support measures as local plans are finalized. Nestlé confirmed that it will provide additional updates during its full-year earnings presentation scheduled for early 2026. – By EuroWire News Desk.