Nestlé announces massive job cuts
The world’s number one food and beverage group, Nestlé, announced it will cut up to 16,000 jobs within the next two years. This is all part of a broader drive to cut costs and accelerate growth following a time of internal upheaval and weak performance.
CEO Philipp Navratil, hired at the company a month ago, described the call as tough but one that needed to be made to get Nestlé in a position to be more competitive. “We are building a culture that encourages a performance mindset, that does not tolerate sacrificing market share, and where wins are celebrated,” Navratil said.
He also framed the actions the company would be taking—including laying off employees—as being aimed at “securing Nestlé’s future as a leader in our industry” while returning shareholders better returns.
A company in transition
Navratil took the helm after a series of leadership shifts at the Swiss-based company. His successor, Laurent Freixe, was ousted from the position fewer than twelve months after an internal investigation concluded he had an unwarranted relationship with one of his direct reports — a violation of Nestlé’s code of conduct.
Freixe, while in the process of developing Nestlé’s product lineup and strategy, left without a leave package. His exit came after decades of instability in leadership. Former CEO Ulf Mark Schneider had also left willingly earlier under growing speculation over the underperformance of the company. Board Chairman Paul Bulcke praised Navratil for his leadership and said that the board has “full confidence in his ability to deliver results in challenging situations.”
Struggling to grow
Struggling to grow, Nestlé, which owns premium brands like Nescafé, KitKat, Purina, and Toll House, has been seeing slowing growth alongside rising costs. In the first half of 2025, the company had registered organic growth of only 2.9%, much of which was due to higher prices and not sales of additional products.
Its real in-store growth — product assortment and sales volume changes — was merely 0.2%, which is a testament to the paltry consumer demand. Higher inflation, pricier ingredients, and shifting consumer preferences have all been combining to make it tougher by the day for the company to grow.
Despite the third quarter witnessing improvement with Nestlé organic sales growth gaining pace at 4.3%. This, however, the company claimed, was based on robust sales in its pet care and coffee business sectors.
CEO demands “faster, smarter” action
Navratil has said Nestlé needs to act quickly to regain competitiveness. “We have to do more and do it quicker in order to build growth momentum,” he said to shareholders. The company’s new plan is to streamline the business, invest in automating factory work, and flatten management.
Here is something i think you should know: Nestlé will also look to divest underperforming brands and focus on where it is strongest, such as nutrition, health brands, and sustainable packaging.
The job losses, while significant, will be proportionate throughout departments and geographies. The company will provide assistance to the impacted employees, such as placement assistance and redundancy packages.
Rebuilding investor confidence
The experts attribute the huge redundancies as an indication of Nestlé’s determination to restore investor confidence following a difficult time. The shareholders have been mounting pressure for improved returns and more stable performance, piling on pressure on the stock of the company.
Despite these issues, though, most analysts believe that Nestlé’s restructuring will ultimately bear fruit. By cutting costs, sharpening operations, and capitalising on its most profitable endeavours, the firm can position itself for consistent growth in the next several years.
Looking ahead
With its massive international presence, Nestlé is the largest food company in the world, employing nearly 275,000 people in more than 180 countries. While products continue to be familiar household brands, aggressive competition from specialist, health-focused brands and recession have posed an increasingly dangerous threat to the company’s position of leadership.
Navratil’s arrival is a fresh start for Nestlé. His assignment will be to balance the need to cut costs and innovate, propelling the company to brand leadership with consumers and to a stabilising position in a rapidly fluctuating food business.
If the transformation works, Nestlé can show the world why it has been a world food industry leader for over 150 years.
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