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Global consumer goods leader Nestlé stated it will cut sixteen thousand positions within the coming 24 months, as its new CEO Philipp Navratil advances a initiative to concentrate on products offering the “highest potential returns”.

This multinational corporation must “evolve at a quicker pace” to keep pace with a dynamic global environment and implement a “performance mindset” that rejects losing market share, the executive stated.

His appointment followed ex-chief executive the previous leader, who was terminated in the ninth month.

The job cuts were made public on Thursday as the corporation announced improved sales figures for the first three-quarters of 2025, with higher revenue across its major categories, such as coffee and sweets.

The world's largest consumer packaged goods corporation, this industry leader operates numerous product lines, among them Nescafé, KitKat and Maggi.

Nestlé aims to get rid of 12,000 professional positions alongside 4,000 additional positions company-wide within the next two years, it stated officially.

The lay-offs will cut costs by the food giant approximately CHF 1 billion each year as within an continuous efficiency drive, it confirmed.

Its equity price increased 7.5% shortly after its trading update and job cuts were made public.

The CEO stated: “We are cultivating a corporate environment that embraces a results-driven attitude, that does not accept market share declines, and where achievement is incentivized... The world is changing, and Nestlé needs to change faster.”

The restructuring would involve “difficult yet essential actions to cut staff numbers,” he noted.

Market analyst an industry specialist stated the update signalled that Mr Navratil wants to “increase openness to areas that were formerly less clear in its expense reduction initiatives.”

These layoffs, she said, appear to be an initiative to “recalibrate projections and regain market faith through measurable actions.”

His forerunner was dismissed by Nestlé in the start of last fall following a probe into whistleblower allegations that he failed to report a romantic relationship with a junior employee.

The company's outgoing chair Paul Bulcke brought forward his leaving schedule and left his post in the same month.

Media stated at the time that shareholders attributed responsibility to Mr Bulcke for the firm's continuing challenges.

The previous year, an study found its baby formula and foods available in emerging markets had undesirably high quantities of sweeteners.

The research, carried out by advocacy groups, found that in many cases, the same products sold in developed nations had no added sugar.

• Nestlé operates numerous product lines internationally.
• Workforce reductions will affect 16,000 workers during the upcoming biennium.
• Cost reductions are estimated to reach 1bn SFr annually.
• Equity rose 7.5% after the news.