Nestlé Layoffs to Eliminate 16,000 Jobs Globally

Nestlé announced it will cut approximately 16,000 positions worldwide over the next two years, as the Swiss food and beverage group aims to reduce costs and sharpen its strategic focus under its new leadership.

According to Reuters, the reductions affect both corporate and operational roles as about 12,000 white-collar jobs will be eliminated, while 4,000 roles in manufacturing, logistics, and supply chain operations are slated for cuts.

Nestlé has raised its cost-savings target to 3 billion Swiss francs by 2027 (up from a prior target of 2.5 billion) as it pushes an efficiency agenda.

This restructuring follows a period of internal upheaval. Earlier this year, then-CEO Laurent Freixe was dismissed amid revelations of an undisclosed relationship with a subordinate.

Shortly after, Chairman Paul Bulcke stepped down, and former Inditex head Pablo Isla was named his successor.

Philipp Navratil, a long-tenured Nestlé executive, took the helm as CEO. One of his earliest moves has been to accelerate the restructuring push.

“The world is changing, and Nestlé needs to change faster,” he said, adding the job cuts are “hard but necessary.”

Nestlé’s Q3 results offer mixed readings. Organic sales rose 4.3 percent year-on-year, aided by price increases in coffee and confectionery segments, while headline revenue fell 1.9 percent due to currency effects.

Analysts had expected weaker internal growth; Nestlé delivered 1.5 percent growth in real internal metrics versus the consensus of 0.3 percent.

Navratil has announced strategic reviews of underperforming segments, including the water, premium beverage, and vitamins & supplements businesses.

Nestlé’s stock surged nearly 7.5 to 8 percent in early trading following the announcement of its largest single-day gain in years. 

The move has drawn comparisons to broader corporate shifts: white-collar layoffs are spreading beyond tech into consumer goods, driven in part by automation, cost pressures, and demand volatility.

Still, the scale of cuts carries risks: talent drain, morale damage, and execution missteps in critical functions. Analysts caution that performance metrics may suffer if restructuring is too aggressive or poorly managed.

This decision marks the largest workforce reduction in Nestlé’s recent history and signals a sharper operational discipline under Navratil’s leadership.

The coming months will test whether the cuts can be delivered without impairing growth engines or undermining the firm’s global capabilities.