Nestle Announces Plan to Slash 16000 Jobs in Major Cost Saving Move

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Nestle Announces Plan to Slash 16000 Jobs in Major Cost Saving Move

Nestle, the largest packaged-food corporation globally, is implementing a significant workforce reduction. The company will cut 16,000 jobs over the next two years as part of a broader cost-saving strategy. This move comes under the new leadership of CEO Philipp Navratil, who aims to enhance the company’s financial performance.

Nestle’s Cost-Cutting Objectives

In an announcement made on Thursday, Navratil revealed ambitious targets for Nestle. The company seeks to achieve cost savings of 3 billion Swiss francs by the end of 2027, a revision from previous estimates. He emphasized the commitment to a rigorous approach in resource allocation to focus on the most promising business opportunities.

New Leadership Direction

Navratil, who took charge only a month ago, underscored the urgency for Nestle to accelerate its growth strategy. He stated that the company must be bold in investing and must leverage innovation to enhance both growth and shareholder value.

Current job cuts: 16,000 positions
Cost savings target: 3 billion Swiss francs by the end of 2027

Challenges and Changes at Nestle

The company has faced leadership challenges recently. Former CEO Laurent Freixe was ousted due to an inappropriate relationship with a subordinate, which led to breaches of Nestle’s code of conduct. This event came less than a year after he took office, following the voluntary departure of Ulf Mark Schneider due to underperformance issues.

Financial Performance Insights

Nestle’s financial performance has shown fluctuations. The first half of fiscal 2025 recorded a modest 2.9% organic growth, primarily influenced by price increases. Internal growth metrics pressured by consumer demand only ticked up by 0.2%. However, by the third quarter, there was a notable recovery, with organic sales growth rising to 4.3%.

As Nestle moves forward with its transformation plans, the focus remains on securing its leadership position within the industry while enhancing shareholder satisfaction.