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Nestlé to cut 16,000 jobs globally as new CEO pushes efficiency amid sales growth
Nestlé will cut 16,000 jobs globally, including 12,000 white-collar roles and 4,000 in manufacturing and supply chain, as part of CEO Philipp Navratil’s efficiency drive.
The job cuts come at a time of managerial turbulence for Nestlé.
Nestlé has announced plans to cut 16,000 jobs globally as part of a broader effort to boost efficiency and streamline operations, newly appointed CEO Philipp Navratil said on Thursday, Reuters reported.
The reductions include 12,000 white-collar roles and an additional 4,000 positions in manufacturing and supply chain functions. Nestlé currently employs around 2,77,000 people worldwide.
The job cuts come at a time of managerial turbulence for Nestlé. Navratil, formerly head of Nespresso, assumed the CEO role following the sudden departure of Laurent Freixe in September over an undisclosed relationship with a direct report.
The company also saw a leadership shift at the top, with Chairman Paul Bulcke stepping down early to make way for former Inditex chief Pablo Isla just two weeks later.
Despite the internal upheaval, Nestlé reported better-than-expected sales growth in the third quarter, driven primarily by price increases in coffee and confectionery. The company recorded a 1.5% rise in real internal growth (RIG), a measure of sales volumes far exceeding analysts’ forecast of 0.3%. This growth provides Navratil with some room to implement strategic changes as he seeks to strengthen Nestlé’s operational efficiency.
Navratil emphasized that the restructuring is aimed at making the company leaner and more competitive in a challenging global market. “We are focused on increasing productivity and streamlining processes across the business while continuing to invest in growth categories,” he said.
The cuts, which will affect multiple regions and functions, underscore the broader trend of cost optimization among multinational corporations amid inflationary pressures and evolving consumer demands. While Nestlé’s sales performance remains solid, the company is taking decisive steps to align workforce size with business priorities and prepare for long-term sustainable growth.
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