Nestlé just announced it is cutting 16,000 jobs worldwide over the next two years. That is nearly 6% of its entire workforce. Why? The company says it is time to cut costs, work smarter, and respond faster to a world that is changing quickly.
New CEO Philipp Navratil, who took the reins in September, called the layoffs “hard but necessary.” He is signaling a major reset after years of slow growth, rising costs, and internal drama. Nestlé needs to move faster, and this is the first big step.
Nestle / IG / The bulk of the layoffs will hit corporate offices. About 12,000 white-collar jobs are on the line. Nestlé plans to streamline teams, automate routine work, and centralize services across regions.
The remaining 4,000 jobs are coming from Nestlé’s factories and supply chains. The company wants to modernize production, boost productivity, and push more digital tools into its operations.
The plan has a name: “Fuel for Growth.” Nestlé wants to free up billions to invest in its strongest brands. The company has bumped up its savings target to 3 billion Swiss francs by 2027. The job cuts alone are expected to save approximately $1 billion per year.
Navratil says Nestlé has grown too slowly and too bulky. The restructuring aims to address this by simplifying the company's operations. Many of the eliminated jobs will be replaced by technology.
The food and beverage giants is also reshaping what it sells. The company is doubling down on big moneymakers like coffee, candy, and premium products. It is reviewing other areas, such as bottled water and vitamins, to determine if they are worth keeping.
The pressure has been building. Nestlé’s numbers have been soft for a while. Sales have been dragging. The company reported a 1.9% drop in reported sales for the first nine months of 2025. Organic growth is holding up at 3.3%, but that is not enough to excite investors.
The stock has taken a beating. Nestlé shares are down 35% since 2022. That is a lot for a company known for being boring and stable. Investors have been waiting for a bold move. Now they have got one.
Nestle / IG / This is a portfolio clean-up. Nestlé wants fewer distractions and better returns. Expect to see more focus on high-growth items, and possibly some business units sold off or spun out.
Just weeks ago, Nestlé went through a major shake-up at the top. CEO Laurent Freixe was shown the door after failing to disclose a relationship with an employee. Chairman Paul Bulcke, a long-standing figure at Nestlé, also stepped down.
Plus, outside forces are also squeezing Nestlé. Raw material costs have soared. Coffee, cocoa, and other ingredients are getting more expensive. At the same time, new tariffs in the U.S. are making exports pricier. Consumers are also spending more cautiously in key markets.
The company is therefore caught between rising costs and weaker demand. That is a tough combo. It needs to act fast to protect its margins and find new growth. The restructuring is about survival as much as strategy.
Investors like what they are seeing so far. After the announcement, Nestlé’s stock jumped more than 7.5%. Analysts say it is a sign that investors are ready to give Navratil a shot. Cutting jobs isn’t popular, but it shows serious intent.
Nestlé is pushing a “performance mindset.” That means less room for underperforming units and more attention to what works. The focus is now on profitable growth and strict discipline regarding where money and effort are allocated.
