As part of its continuous efficiency and growth strategies, Nestle said that it would cut 16,000 jobs worldwide, including 12,000 white-collar jobs and 4,000 manufacturing and supply chain positions. Around 2.7 lakh individuals work for the organization worldwide.
According to the Financial Times, Nestle’s new CEO, Philipp Navratil, said on Thursday that around 16,000 workers, or 6% of the company’s workforce, will lose their jobs over the next two years.
The news coincided with Nestle’s Q2 results, which showed that the biggest packaged food business in the world had stronger-than-expected sales growth, mostly due to increased pricing for its chocolate and coffee goods, according to a report by Reuters.
Nestle will cut off 16,000 employees in 2025
As part of its continuous efficiency and growth strategies, Nestle said that it would cut 16,000 jobs worldwide, including 12,000 white-collar jobs and 4,000 manufacturing and supply chain positions. Currently, the corporation has over 2.7 lakh employees worldwide.
Before declaring, “This will include making difficult but essential choices to cut staff over the next two years,” he said, “the world is changing and Nestlé has to move quicker.”
Former Nespresso CEO Laurent Freixe was sacked due to an undeclared connection with a direct subordinate, and Navratil took over as CEO.
Results for Nestle India’s second quarter: net profit of Rs 753.2 cr
For the second quarter of FY26, Nestle India recorded a 23.6% decrease in net profit, coming in at Rs 753.2 crore as opposed to Rs 986.36 crore during the same time the previous year. The business made Rs 1,028.52 crore before taxes and extraordinary items.
Manish Tiwary, the company’s chairman and managing director, said that volumes were a major factor in the company’s expansion. “Three of the four product groupings saw double-digit increase on a volume basis. We had the largest domestic sales in any quarter ever, totaling Rs 5,411 crore. I want to express my gratitude to our staff for their dedication and perseverance,” he added.
Real internal growth (RIG), a gauge of sales volumes, increased by 1.5% in the third quarter, far above experts’ projections of a 0.3% increase. This might provide Navratil some breathing room as he attempts to establish himself after his abrupt elevation.
As expenses have increased and debt levels have increased due to mounting investor pressure, the Swiss manufacturer of KitKat chocolate bars, Nespresso coffee, and Maggi seasoning has been struggling to rekindle stagnating sales growth and stop a sharp decline in share price.
Nestle’s biggest aim, according to Navratil, is to drive RIG-led growth. By the end of 2027, the company plans to increase its cost savings target from 2.5 billion Swiss francs to 3 billion Swiss francs ($3.77 billion).
“We are cultivating a culture that rewards success, encourages a performance attitude, and does not tolerate losing market share,” Navratil said in a statement.