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Food and beverage giant the Swiss conglomerate announced it will cut 16,000 roles during the upcoming biennium, as its new CEO Philipp Navratil pushes a plan to concentrate on products offering the “most lucrative outcomes”.

The Swiss company has to “evolve at a quicker pace” to stay aligned with a changing world and adopt a “results-oriented culture” that does not accept declining competitive position, said Mr Navratil.

He took over from former CEO the previous leader, who was dismissed in last fall.

These workforce reductions were made public on Thursday as Nestlé announced better performance metrics for the initial three quarters of 2025, with higher product movement across its primary segments, such as hot drinks and snacks.

Globally dominant food & beverage corporation, Nestlé operates a multitude of product lines, among them Nescafé, KitKat and Maggi.

Nestlé plans to eliminate twelve thousand white collar roles in addition to 4,000 other roles throughout the organization within the next two years, it said in a statement.

The lay-offs will cut costs by the corporation around one billion Swiss francs annually as part of an continuous efficiency drive, it said.

Its equity price increased 7.5% soon after its quarterly update and layoff announcement were announced.

Mr Navratil commented: “We are fostering a culture that adopts a performance mindset, that does not accept competitive setbacks, and where winning is rewarded... The marketplace is evolving, and Nestlé needs to change faster.”

The restructuring would include “tough but required decisions to trim the workforce,” he added.

Market analyst Diana Radu stated the announcement suggested that the new CEO seeks to “increase openness to sectors that were previously more opaque in Nestlé's cost-saving plans.”

These layoffs, she explained, appear to be an initiative to “reset expectations and regain market faith through concrete measures.”

His forerunner was dismissed by Nestlé in the start of last fall after an investigation into whistleblower allegations that he failed to report a personal involvement with a direct subordinate.

The former board leader Paul Bulcke accelerated his departure date and stepped down in the corresponding timeframe.

It was reported at the period that investors attributed responsibility to the former chairman for the firm's continuing challenges.

Last year, an investigation revealed its baby formula and foods available in emerging markets contained unhealthily high levels of sugar.

The research, carried out by advocacy groups, established that in numerous instances, the identical items sold in developed nations had no added sugar.

• Nestlé manages a wide array of product lines worldwide.
• Layoffs will impact sixteen thousand staff members throughout the upcoming biennium.
• Cost reductions are estimated to amount to CHF 1 billion annually.
• Share price increased 7.5% post the announcement.