Nestlé's new CEO announced the elimination of 16,000 jobs over the next two years when releasing the results for the first nine months of 2025 on Thursday, as reported by AFP.
The Swiss food giant, with a strong presence in Latin America, reported a 1.9% decrease in sales to 65.9 billion Swiss francs (78 billion euros).
"The world is changing and Nestlé must adapt more quickly," which will involve "making difficult but necessary decisions to reduce the workforce," said its CEO Philipp Navratil, who took over in September, as quoted in a statement.
This workforce reduction program includes, in particular, the elimination of 12,000 administrative positions in various functions and parts of the world, "which will allow saving 1 billion francs annually by the end of 2027," double the amount previously planned, the company detailed.
In addition, 4,000 jobs will be affected by ongoing initiatives aimed at accelerating production and the supply chain, the statement adds.
The food conglomerate, with over 2,000 brands including instant coffee Nescafé, Maggi soups, and KitKat chocolates, experienced a turbulent September in its top management.
Its former CEO, Frenchman Laurent Freixe, was dismissed due to a "romantic relationship" with a subordinate, and its chairman, Belgian Paul Bulcke, announced his departure from the company.
Financial analysts expect Navratil, who previously led Nespresso, to restore stability to the group, which has seen its growth stagnate since the 2022 inflation wave and has faced several reputation crises.