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Food and beverage giant Nestlé has declared it will eliminate 16,000 positions during the upcoming biennium, as the recently appointed chief executive the company's fresh leader pushes a strategy to focus on products offering the “most lucrative outcomes”.

This multinational corporation has to “change faster” to remain competitive in a dynamic global environment and adopt a “performance mindset” that does not accept losing market share, the executive stated.

He replaced former CEO Laurent Freixe, who was let go in last fall.

The layoff announcement were made public on Thursday as Nestlé announced improved performance metrics for the initial three quarters of 2025, with higher product movement across its major categories, including coffee and sweets.

The world's largest packaged food and drink firm, Nestlé owns numerous brands, among them its coffee, chocolate, and food brands.

Nestlé aims to eliminate 12,000 administrative roles alongside 4,000 other roles across the board over the coming 24 months, it said in a statement.

These job cuts will save the corporation approximately CHF 1 billion annually as a component of an ongoing cost-savings effort, it confirmed.

Nestlé's share price rose 7.5% soon after its performance report and restructuring news were announced.

Mr Navratil commented: “We are fostering a culture that adopts a achievement-oriented approach, that does not accept market share declines, and where winning is rewarded... The marketplace is evolving, and the company requires accelerated transformation.”

The restructuring would encompass “tough but required choices to trim the workforce,” he said.

Equity analyst Diana Radu said the announcement signalled that the new CEO aims to “increase openness to sectors that were once ambiguous in its expense reduction initiatives.”

The job cuts, she noted, are likely an initiative to “recalibrate projections and rebuild investor confidence through concrete measures.”

Mr Navratil's predecessor was dismissed by the company in the start of last fall after an investigation into whistleblower allegations that he failed to report a personal involvement with a immediate staff member.

The company's outgoing chair the ex-chairman brought forward his departure date and resigned in the corresponding timeframe.

Sources indicated at the time that stakeholders held accountable the former chairman for the company's ongoing problems.

In the prior year, an investigation discovered its baby formula and foods sold in emerging markets included unhealthily high levels of added sugars.

The research, conducted by non-profit organizations, established that in several situations, the identical items marketed in wealthy countries had no extra sugars.

• Nestlé manages hundreds of product lines globally.
• Job cuts will affect 16,000 employees during the coming 24 months.
• Expense cuts are anticipated to total 1bn SFr each year.
• Share price rose 7.5% post the update.