Nestle to cut 16,000 jobs as new CEO aims to boost sales
Nestle (NESN.S) announced on Thursday that it will reduce its workforce by 16,000 employees over the next two years as part of efforts to increase sales volumes and improve efficiency, according to new CEO Philipp Navratil.
The Swiss food giant reported better-than-expected third-quarter sales growth, driven by higher prices for coffee and confectionery products, including Nespresso and KitKat. Real internal growth (RIG), which measures sales volumes, rose 1.5%, surpassing analysts’ forecast of 0.3%, News.Az reports, citing Reuters.
Navratil, formerly head of Nespresso, succeeded Laurent Freixe, who was dismissed in September over an undisclosed relationship with a direct report. The leadership change comes amid a period of managerial turbulence, including the resignation of Chairman Paul Bulcke and the appointment of former Inditex chief Pablo Isla as his successor.
The planned job cuts include 12,000 white-collar positions and an additional 4,000 roles in manufacturing and supply chain operations. Nestle currently employs roughly 277,000 people worldwide.
Navratil emphasized that driving RIG-led growth is the company’s top priority and announced that Nestlé will increase its cost-savings target to 3 billion Swiss francs ($3.77 billion) by 2027, up from 2.5 billion francs.
“We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” Navratil said. “The world is changing, and Nestle needs to change faster.”
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