Nestlé to Cut 16,000 Jobs in Global Restructuring Drive
Work News | New Stardom
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Nestlé will eliminate about 16,000 jobs worldwide over the next two years as part of a restructuring aimed at cutting costs and redirecting investment to higher-return areas. The move follows nine-month 2025 results showing moderate growth and continued pressure on volumes.
Sales for the period reached CHF 65.9 billion, down 1.9 percent year-on-year, largely because of adverse currency movements. Organic growth rose 3.3 percent, driven mainly by price increases and limited real internal growth of 0.6 percent. The third quarter showed improvement, with 4.3 percent organic growth and 1.5 percent real internal growth, supported by stronger demand in coffee, confectionery and pet care.
Chief executive Philipp Navratil said Nestlé must “change faster,” confirming that most of the job cuts will target white-collar roles across functions and regions. Around 12,000 corporate positions will be removed, including jobs in R&D, marketing, and administrative functions, along with 4,000 manufacturing and supply-chain roles. The measures form part of the expanded Fuel for Growth programme, now targeting CHF 3 billion in cost savings by 2027, up from CHF 2.5 billion. The company expects annual savings of CHF 1 billion from the white-collar reductions, though one-off restructuring costs are expected to double that amount.
Nestlé pledged to carry out the process “with respect and transparency,” but the plan signals the most significant reorganisation in years. The move comes amid leadership changes and slowing momentum in key markets, particularly China, which remains a drag on group growth.
Despite the turbulence, investors reacted positively. Shares rose roughly 7 to 8 percent on the day, reflecting confidence that sharper cost control and portfolio focus could lift margins and free cash flow. Analysts also noted that Nestlé’s Fuel for Growth strategy, combined with rising investment in high-return categories, may restore competitiveness after several quarters of weak volume growth.
The outcome will depend on execution. Restructuring across multiple jurisdictions, labour consultations and rising one-off charges could delay benefits. With inflation weighing on consumers and new leadership still settling in, Nestlé faces a narrow path between efficiency gains and operational strain.
The company maintained its 2025 outlook, guiding for improved organic growth and an operating profit margin of at least 16 percent.
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