Layoffs at Nestlé: To cut 16,000 jobs as new CEO pushes for growth

The Swiss food giant, maker of Nescafé, KitKat, Purina, and Maggi, plans to achieve 3 billion Swiss francs ($4.02 billion) in savings by the end of 2026, up from the previous target of $3.35 billion. 

Management expects the reductions to deliver annual savings of 1 billion francs by the end of next year. 

“The world is changing, and Nestlé needs to change faster,” Navratil said, framing the move as a reset to make the company more agile, innovative, and consumer-focused. 

"To that end, we are making the hard, but necessary decision to plan to reduce headcount globally over the next two years. We will do this with respect and transparency. We are also increasing our savings target to CHF 3 billion by the end of 2027," Navratil added. 

Nestlé shares jumped nearly 8% in Zurich after the announcement, reflecting investor approval. The shake-up comes after months of turbulence. 

In September, Nestlé dismissed CEO Laurent Freixe following an internal probe, replacing him swiftly with Navratil, a Nespresso veteran. Chairman Paul Bulcke also stepped down early, underscoring the depth of the leadership transition. 

Like peers across the global food sector, Nestlé has faced rising commodity costs, trade headwinds, and shifting consumer habits. While price increases in coffee and confectionery have helped offset some costs, persistent inflation and margin pressures have forced the company to rethink its operations. 

The move makes Nestlé’s restructuring one of the most aggressive in Europe this year, with industry watchers closely monitoring whether the company can sustain growth while slashing headcount. “This is about building an organisation that can move with agility, innovate faster and serve consumers better,” Navratil said.