Nestlé will cut 16,000 jobs worldwide over the next two years as part of a major restructuring plan aimed at boosting sales and efficiency. The layoffs—nearly 6% of its global workforce—will include 12,000 white-collar roles and 4,000 manufacturing and supply chain positions.
“The world is changing and Nestlé needs to change faster,” said new CEO Philipp Navratil, who took over last month after the dismissal of Laurent Freixe. Navratil announced plans to save 3 billion Swiss francs (£2.8 billion) by 2027, up from a previous target of 2.5 billion.
Nestlé, which makes KitKat, Nescafé, and Purina, said the cuts would improve efficiency and increase automation. The company employs about 4,200 people in the UK.
The announcement came as Nestlé reported a 1.9% drop in reported sales to 65.9 billion francs for the first nine months of the year, though organic sales rose 3.3%. Growth was driven by coffee and confectionery, with higher prices offsetting currency losses.
Analyst Chris Beckett said the shake-up shows Navratil “isn’t afraid to take drastic action to restore Nestlé’s performance,” though the turnaround “remains a work in progress.”
