Nestlé announced today that it will cut around 16,000 jobs globally over the next two years under its new leadership, as part of a sweeping efficiency drive.
The job cuts—roughly 5.8 percent of its workforce—are being implemented under newly appointed CEO Philipp Navratil, who replaced Laurent Freixe, and with a change in board leadership following the exit of longtime chairman Paul Bulcke.
Of the total cuts, about 12,000 will affect white-collar roles, and 4,000 are expected in manufacturing and supply chain units according to company disclosures.
Nestlé has also raised its cost-savings target from 2.5 billion Swiss francs to 3 billion francs by 2027, signaling the depth of its restructuring efforts.
Despite the layoffs announcement, Nestlé posted a 1.5 percent rise in real internal growth (RIG) in its third quarter, outperforming forecasts.
Analysts say the cuts are part of a broader pivot: the new leadership aims to streamline operations, prioritize high-margin segments, and reposition the company for faster growth amid evolving consumer demands and cost pressures.
Yet, risks remain. Displacing thousands of workers, especially in critical operations, can erode morale, prompt talent loss, and attract regulatory scrutiny in various jurisdictions. Stakeholders will closely watch how the company balances efficiency with stability.
