Nestlé, the Swiss food and beverage giant, announced a major restructuring plan today, which will result in the elimination of 16,000 jobs—approximately 6% of its global workforce of 277,000—over the next two years.
This announcement is part of new CEO Philipp Navratil’s “Fuel for Growth” initiative, aimed at streamlining operations, enhancing efficiency, and refocusing investments on innovation and high-return areas such as acquisitions.
The job cuts will predominantly impact 12,000 white-collar roles and 4,000 positions in manufacturing and supply chain.
The restructuring is expected to incur costs of about 2 billion Swiss francs ($2.3 billion USD) but is projected to generate savings of 1 billion Swiss francs annually by 2027.
This news coincides with Nestlé’s third-quarter results, which revealed a 4.3% organic sales growth that surpassed expectations, driven by price increases on products like chocolate and coffee.
Investors responded positively to the aggressive cost-cutting measures and leadership-led turnaround, causing Nestlé’s shares to rise nearly 8% in Zurich trading according to reuters—the largest single-day gain in 17 years.
This surge also boosted the broader European food and beverage sector by over 3%, indicating market confidence in Nestlé’s strategy to tackle sluggish growth and compete more effectively.
Navratil, who took over as CEO in September 2025 following the unexpected departure of his predecessor, Laurent Freixe, highlighted the importance of agility in response to inflationary pressures and changing consumer behaviors.
Analysts view this restructuring as a decisive move to restore Nestlé’s competitive edge, especially after a 9% decline in its stock over the past year and a 40% drop from its peak in 2021.
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