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Food and beverage giant Nestlé announced it will remove 16,000 jobs over the next two years, as its new CEO Philipp Navratil advances a plan to focus on products offering the “most lucrative outcomes”.

This multinational corporation needs to “adapt more quickly” to stay aligned with a dynamic global environment and implement a “results-oriented culture” that does not accept ceding ground to competitors, the executive stated.

His appointment followed former CEO the previous leader, who was terminated in last fall.

The job cuts were made public on Thursday as the corporation reported stronger performance metrics for the initial three quarters of 2025, with expanded product movement across its primary segments, including beverages and confectionery.

The world's largest consumer packaged goods company, this industry leader operates hundreds of product lines, including Nescafé, KitKat and Maggi.

Nestlé plans to get rid of twelve thousand administrative roles on top of 4,000 other roles company-wide over the coming 24 months, it stated officially.

The lay-offs will result in savings of the food giant around CHF 1 billion per annum as part of an ongoing cost-savings effort, it confirmed.

Its equity price was up seven and a half percent shortly after its performance report and layoff announcement were announced.

Nestlé's leader commented: “We are cultivating a organizational ethos that embraces a achievement-oriented approach, that does not accept market share declines, and where success is recognized... Global dynamics are shifting, and we must adapt more rapidly.”

Such change would involve “hard but necessary actions to reduce headcount,” he said.

Financial expert Diana Radu stated the announcement suggested that Nestlé's leader aims to “enhance clarity to aspects that were once ambiguous in Nestlé's cost-saving plans.”

The job cuts, she said, appear to be an effort to “recalibrate projections and rebuild investor confidence through measurable actions.”

Mr Navratil's predecessor was dismissed by Nestlé in early September subsequent to an inquiry into internal complaints that he omitted to reveal a romantic relationship with a direct subordinate.

The company's outgoing chair the ex-chairman brought forward his leaving schedule and resigned in the corresponding timeframe.

Sources indicated at the time that stakeholders blamed the outgoing leader for the firm's continuing challenges.

The previous year, an study discovered its baby formula and foods sold in emerging markets included unhealthily high levels of added sugars.

The study, conducted by non-profit organizations, established that in numerous instances, the identical items sold in affluent markets had zero additional sweeteners.

• The corporation owns numerous brands worldwide.
• Job cuts will impact sixteen thousand employees during the coming 24 months.
• Savings are estimated to total 1bn SFr per year.
• Stock value increased seven and a half percent following the update.