By John Meyer, consultant in business – Eurasia Business News, October 16, 2025. Article no. 1830

Nestlé announced on October 16 a major restructuring plan to cut 16,000 jobs worldwide over the next two years as part of a “turnaround fire” ignited by newly appointed CEO Philipp Navratil. The layoffs include about 12,000 white-collar roles primarily in professional areas and 4,000 jobs in manufacturing and supply chain. This reduction represents around 6% of Nestlé’s global workforce of approximately 277,000 employees. The job cuts aim to boost operational efficiency through automation and sharpen Nestlé’s focus on high-return products.

Navratil emphasized the need for the company to adapt faster to the evolving market landscape by instilling a strong “performance mindset” that rewards success and does not tolerate market share losses. The cost-saving initiative is expected to generate approximately 1 billion Swiss francs annually, raising the total targeted savings to 3 billion Swiss francs by the end of 2027, up from the previous 2.5 billion target.

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Despite the cuts, Nestlé reported better-than-expected organic sales growth of about 1.5% in the first nine months of 2025 driven by price increases in key categories like coffee and confectionery. The new CEO’s focus is on accelerating growth momentum and making the company more agile amid management disruptions and shifting global consumer demands. Analysts and investors see this as a bold, strategic pivot to restore growth and shareholder confidence as Nestlé faces ongoing challenges across its diverse product portfolio.

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© Copyright 2025 – Eurasia Business News. Article no. 1830