Nestle, the world’s biggest food and beverage company, announced plans to eliminate 16,000 positions. This adjustment is part of a sector-wide restructuring effort that will roll out over the next two years. This expansion announcement, which the company made on Thursday, further reaffirms the company’s commitment to adjusting to a quickly evolving market. Incoming CEO Philipp Navratil succeeded Laurent Freixe after he was unexpectedly dismissed in September. He laid the challenge down, reminding everyone that if the company was going to remain competitive, they needed to gain a performance-first mentality.
Navratil’s appointment comes on the heels of the contentious dismissal of Freixe. His dismissal was ultimately due to a consensual personal relationship with an employee. The leadership change marks a pivotal moment for Nestle as it seeks to navigate a landscape increasingly influenced by shifting consumer preferences and competition.
With these job cuts, Nestle plans to save around 1 billion Swiss Francs (£940 million) per year. This change continues our long-term effort to improve efficiency and focus operations on the missions most essential to our core public service. The company has enjoyed breathtaking sales numbers through the first three quarters of 2025. They’ve experienced an increase in sales in all their key product categories, from coffee to confectionary.
“The world is changing, and Nestle needs to change faster,” said Navratil. He stressed the importance of focusing on projects that hold out the greatest return potential. This would be the perfect fit for his stated goal of making the agency more agile and nimble.
Navratil further remarked on the company’s transformative approach, stating, “We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded…”
Though Nestle has recently been profitable, it knows that it must continue to evolve with the current times. Through significant layoffs, the automaker plans to further sharpen its competitive edge and improve long-term viability within a fiercely competitive global market.