Nestlé will cut 16,000 jobs in a major restructuring effort aimed at boosting sales volumes, new CEO Philipp Navratil announced on Thursday. The world’s largest packaged food company reported stronger-than-expected sales growth, driven by higher prices in its coffee and confectionery divisions.
Navratil, formerly head of Nespresso, stepped into the role after Laurent Freixe was dismissed in September following an undisclosed relationship with a direct subordinate. His appointment comes amid a period of significant upheaval at Nestlé, including the early departure of Chairman Paul Bulcke, who was replaced by former Inditex chief Pablo Isla two weeks later.
Third-quarter results showed a 1.5% rise in real internal growth (RIG) — a key measure of sales volumes — far exceeding analyst forecasts of 0.3%. This performance gives Navratil some momentum as he begins implementing changes.
To streamline operations, the company will eliminate 12,000 white-collar positions and an additional 4,000 jobs across manufacturing and supply chain as part of ongoing efficiency measures. Nestlé currently employs about 277,000 people worldwide.
Facing mounting investor pressure over rising costs, debt, and a weakening share price, Nestlé aims to reignite growth by focusing on volume rather than price increases. Navratil said the company would raise its cost-saving target to 3 billion Swiss francs ($3.77 billion) by the end of 2027, up from 2.5 billion.
“We are building a culture focused on performance — one that refuses to lose market share and rewards success,” Navratil said. “The world is changing, and Nestlé must change faster.”
