Nestléthe oldest world food companyannounced this Thursday a global restructuring plan that contemplates the elimination of about 16,000 jobs in the next two yearswhich represents about 6% of its workforce. The measure seeks to respond to a changing economic environment and align the company’s resources with its growth, innovation and operational efficiency.
“The world is changing and Nestlé needs to change faster. This will include taking difficult but necessary decisions to reduce the workforce in the next two years,” he explained Philip NavratilCEO of the company since September, after violating the code of business conduct.
Of the total cuts, Some 12,000 positions correspond to administrative functions in different geographies. This reduction will allow reaching a annual savings of 1,000 million Swiss francs (1,076 million euros) by 2027double the initial plan. In addition, the company plans to eliminate some 4,000 additional positions linked to productivity processes in manufacturing and supply chain areas.
“Along with other measures, we are working to substantially reduce our costs and today we are increasing our savings target to 3 billion Swiss francs by the end of 2027“, highlighted Navratil, who has defended these decisions as key to “securing the future of Nestlé” and improve its global competitiveness.
In parallel, the company has defined new strategic prioritiescentered on a more selective capital allocation, greater investment in innovationand a deeper consumer insight. “We will be rigorous in our approach to resource allocation, prioritizing opportunities and businesses with the greatest potential for profitability,” stated the CEO. “
We are fostering a culture that embraces a performance mentalitywhich does not accept losing market share and where winning is rewarded,” he stated.
Mixed results in 2025
Regarding its financial results, Nestlé has reported that, between January and September 2025, it reached approximately sales of 65,869 million Swiss francs (70,880 million euros)which represents a 1.9% drop in absolute terms. However, in organic terms, which exclude the impact of exchange rates, Sales grew by 3.3%, with a 2.8% increase in prices.
By region, America recorded a 4.8% drop in revenue, while Europe and Asia grew by 2.6% and 2.5%, respectively. Regarding business lines, Nespresso sales rose 2.6%while Nestlé Health Science fell 1.4% and the premium water and beverage segment fell 0.4%.
In the third quarter alone, sales reached 21,641 million francs (23,287 million euros), 2% less in absolute data, but with an organic increase of 4.3%. “Driving RIG-led growth (real internal growth) is our number one priority”Navratil stated. “We have increased investment to achieve this, and the results are beginning to show. Now we must do more and act faster to accelerate our growth.”
Nestlé expects to close the year with an improvement in organic growth compared to 2024 and a underlying operating margin of at least 16%despite the negative impact of tariffs and exchange rates.
