Nestlé to Cut 16,000 Jobs in Major Restructuring Push
Swiss food giant Nestlé unveiled a sweeping plan on October 16, 2025, to eliminate 16,000 positions globally over the next two years. The move comes shortly after the appointment of new CEO Philipp Navratil, who is aiming to reposition the company amid sluggish growth and intensifying cost pressures.
A Bold First Move Under New Leadership
In his first major strategic act as CEO, Navratil described the cuts as “hard but necessary decisions to reduce headcount” in response to evolving market dynamics. He told investors and the public:
“The world is changing, and Nestlé needs to change faster.”
The announced reduction represents about 6 percent of Nestlé’s workforce of ~277,000. Of the 16,000 jobs:
- 12,000 will be white‑collar roles over the next two years
- 4,000 cuts are already underway in manufacturing and supply chain functions
Beyond personnel reductions, Nestlé raised its cost‑saving ambition: it now aims to achieve CHF 3.0 billion in savings by the end of 2027, up from a previous target of CHF 2.5 billion.
Market Reaction: Share Price Surges
Investors responded rapidly and positively. Nestlé’s share price jumped more than 8 percent in morning trading following the announcement. The broader Swiss market also benefited, with the Zürich index among Europe’s top performers on the day.
Some analysts viewed the move as a signal that Navratil intends to take an aggressive “offense” rather than merely defensive cost cuts.
Context: Growth Challenges & Prior CEO Shakeup
The job cuts come amid prolonged headwinds for Nestlé: weak revenue growth, input inflation, and pressure on margins In its nine‑month 2025 financials, the company reported a 1.9 percent decline in nominal sales, though organic growth stood at 3.3 percent, helped by pricing strategies
The personnel purge also follows internal turmoil: just weeks earlier, Nestlé’s prior CEO and chairman both departed unexpectedly amid controversy.
Analysts have warned that such bold restructuring carries execution risk. While the announcement fueled optimism, delivering on savings and maintaining morale pose significant challenges
What’s Next? Key Risks & Watchpoints
- Execution risk: Large-scale restructuring often meets internal resistance; missteps could undermine productivity or brand.
- Morale & culture: Abrupt cuts may impact talent retention and company culture, especially in markets sensitive to layoffs.
- Revenue pressure: Cost cuts alone may not be enough — Nestlé must also reignite growth in key categories.
- Investor expectations: The stock already rallied on the announcement, setting high expectations for results.
- Macro headwinds: Inflation, global supply chain uncertainty, and weak consumer demand in developed markets remain core threats.
Conclusion
Nestlé’s decision to axe 16,000 jobs is a provocative statement of intent by its new CEO. In a slow-growth environment, cost discipline is critical. But for this to succeed, Nestlé must balance aggressive restructuring with strategic investment that reignites organic growth. Investors will be watching whether Navratil can deliver the savings without losing momentum in its product lines or eroding talent.
If you like, I can also prepare a shorter “brief” version (300–400 words) or an infographic version for your site. Do you want me to send that?Attach
Search
Study
Voice
ChatGPT can make mistakes. Check important info.
