Nestlé announced on Thursday (Oct 16) that it would cut 16,000 jobs worldwide over the next two years, as the company reported a 1.9 per cent drop in nine-month sales to 65.9 billion Swiss francs (S$108 billion) and raised its savings target, Channel News Asia (CNA) reported.
Philipp Navratil, the company’s new chief executive, said, “The world is changing, and Nestle needs to change faster,” including what he called “hard but necessary decisions to reduce headcount.”
Mr Navratil also said the company raised its savings target from 2.5 billion to three billion Swiss francs by the end of 2027.
The job cuts, which include 12,000 white-collar jobs, are expected to save the company one billion Swiss francs—double its earlier cost-cutting plan. Job cuts of another 4,000 positions in production and supply chain are also underway.
Nestlé told CNA that the workforce reduction will affect all markets and functions globally, though it will affect each market in a different way, and each market will prepare its own plan. The company added that it could not yet provide specific numbers, as the plan will be subject to consultations with works councils in various markets.
Nestlé, whose brands include Nespresso, Perrier water, Kit Kat chocolate bars, and Purina dog food, has faced a turbulent period in recent months, including the dismissal of its previous chief executive over an office relationship in September and the early departure of its chairman. Nestlé also faced a scandal over its bottled water operations in France that surfaced in 2024.
In the first nine months of 2025 (9M 2025), Nestlé’s organic sales grew by 3.3 per cent, mainly supported by 2.8 per cent price increases. /TISG
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