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Nestle's Global Layoff Shock: 16,000 Jobs Cut Amid Restructuring Crisis

Nestle is eliminating 16,000 positions globally over the next two years as part of a major restructuring effort. The company's new CEO Philipp Navratil stated these are "hard but necessary decisions" to accelerate transformation. Most of the cuts target white-collar roles, with 12,000 such positions affected. This comes as Nestle reports declining sales and faces multiple challenges including leadership changes and a bottled water scandal in France.

Key Points: Nestle Cuts 16000 Jobs Worldwide Under New CEO Navratil

  • 12,000 white-collar positions among the 16,000 jobs being eliminated worldwide
  • Company targets saving 3 billion Swiss francs by 2027, up from 2.5 billion
  • Nine-month sales dropped 1.9% to 65.9 billion Swiss francs despite price increases
  • New CEO Navratil faces challenges including French water scandal and leadership changes
2 min read

Nestle to cut 16,000 jobs over next two years globally

Nestle announces 16,000 global job cuts over two years, aiming for 3 billion Swiss francs in savings as new CEO Philipp Navratil accelerates company transformation.

"The world is changing, and Nestle needs to change faster - Philipp Navratil"

New Delhi, Oct 16

Nestle, the Swiss food and beverage giant known for brands like Nespresso, Kit Kat, Perrier, and Purina, announced on Thursday that it will cut 16,000 jobs worldwide over the next two years.

The move comes as the company aims to speed up its transformation under new CEO Philipp Navratil, who took charge in early September.

“The world is changing, and Nestle needs to change faster,” Navratil said in a statement.

He added that the job cuts were part of “hard but necessary decisions to reduce headcount” and streamline operations amid changing market conditions.

Of the 16,000 jobs being cut, 12,000 are white-collar positions. Nestle expects this reduction to save one billion Swiss francs, which is double the savings initially planned.

These layoffs come in addition to 4,000 job cuts already in progress in production and supply chain roles.

The company has raised its total savings target to three billion Swiss francs by the end of 2027, up from an earlier goal of 2.5 billion.

The announcement coincided with the release of Nestle’s nine-month financial results, which showed a 1.9 per cent drop in sales to 65.9 billion Swiss francs (around $83 billion).

Organic sales grew 3.3 percent during the period, mainly due to price increases of 2.8 percent.

The Indian arm of the company, Nestle India, also reported a 17 per cent year-on-year (YoY) decline in its consolidated net profit for Q2 FY26.

The FMCG firm posted a profit of Rs 743 crore in Q2, it informed in its exchange filing.

Analysts said the results reflect both economic pressures and ongoing restructuring efforts.

Navratil takes over at a challenging time for Nestle. The previous CEO was dismissed in September over an office relationship, and the company chairman left earlier than expected.

Nestle has also been dealing with a bottled water scandal in France that began in 2024, adding pressure on the new leadership to stabilize the company and restore investor confidence.

- IANS

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Reader Comments

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Rohit P
The new CEO is making tough decisions but 16,000 families affected is heartbreaking. Meanwhile Nestle India's profit fell 17% - not a good sign for job security here. Hope they handle this with compassion.
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Sarah B
As someone working in FMCG sector, this trend is concerning. Companies are prioritizing profits over people. The 12,000 white-collar cuts show even corporate jobs aren't safe anymore. Time to upskill!
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Arjun K
While I understand businesses need to adapt, cutting 16,000 jobs to save money feels excessive. The previous CEO's scandal and now this - Nestle's reputation is taking multiple hits. Maybe they should focus on better leadership instead of job cuts.
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Kavya N
Organic sales growth of 3.3% mainly due to price hikes of 2.8% - so they're charging us more while cutting jobs? Doesn't seem fair to consumers or employees. 😕
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Michael C
The bottled water scandal in France plus leadership issues - Navratil has his work cut out. Hope these restructuring efforts actually lead to sustainable growth rather than just short-term cost cutting.

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