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Global consumer goods leader Nestlé stated it will eliminate 16,000 positions over the next two years, as its new CEO Philipp Navratil drives a strategy to prioritize products offering the “most lucrative outcomes”.

The Swiss company needs to “change faster” to remain competitive in a dynamic global environment and adopt a “achievement-focused approach” that refuses to tolerate declining competitive position, the executive stated.

His appointment followed former CEO Laurent Freixe, who was dismissed in the ninth month.

These workforce reductions were made public on Thursday as Nestlé shared stronger revenue numbers for the first nine months of 2025, with expanded revenue across its primary segments, including coffee and sweets.

The biggest food & beverage company, Nestlé owns numerous labels, including Nescafé, KitKat and Maggi.

Nestlé aims to eliminate 12,000 administrative roles in addition to four thousand additional positions across the board within the next two years, it announced publicly.

The lay-offs will result in savings of the corporation about 1bn SFr (£940m) per annum as a component of an ongoing cost-savings effort, it said.

Nestlé's share price rose seven and a half percent shortly after its quarterly update and job cuts were announced.

Mr Navratil stated: “We are building a organizational ethos that embraces a results-driven attitude, that does not accept market share declines, and where winning is rewarded... Global dynamics are shifting, and Nestlé needs to change faster.”

This transformation would include “difficult yet essential choices to cut staff numbers,” he added.

Equity analyst a financial commentator remarked the announcement suggested that the new CEO seeks to “enhance clarity to aspects that were previously more opaque in the company's efficiency strategy.”

The job cuts, she explained, are likely an initiative to “recalibrate projections and restore shareholder trust through concrete measures.”

Mr Navratil's predecessor was dismissed by the company in the start of last fall subsequent to an inquiry into whistleblower allegations that he omitted to reveal a romantic relationship with a junior employee.

The company's outgoing chair the ex-chairman brought forward his leaving schedule and stepped down in the same month.

Media stated at the period that shareholders held accountable the former chairman for the corporation's persistent issues.

In the prior year, an inquiry found infant nutrition items from the company sold in emerging markets contained undesirably high quantities of added sugars.

The analysis, carried out by advocacy groups, established that in several situations, the identical items available in affluent markets had no added sugar.

• The corporation manages numerous brands globally.
• Job cuts will impact 16,000 employees during the upcoming biennium.
• Expense cuts are anticipated to amount to CHF 1 billion each year.
• Stock value climbed 7.5% following the announcement.