Nestle Announces 16,000โข Job โCuts in Restructuringโ plan
JAKARTA – food and โขbeverage โgiant Nestle willโ reduceโข its global workforce by approximately 16,000 employees,โค representing โ5.8% of its 277,000-strong โworkforce, as part of a cost-cutting initiative and effortโ to โbolsterโ investor confidence. The announcement comes amid significant โฃleadership changes within the company.
Newly appointed CEO Philipp Navratil announced the restructuring plan, raisingโค theโ company’s cost savings target to 3 billion Swiss francs (US$3.77โ billion)โ by โฃ2027, โขan increase from โthe previous target โฃof โข2.5 billion Swiss โfrancs. The cuts are intendedโ to streamline operations and adapt to evolving consumer preferences, including a growing demand for healthier food options.
“The โworldโ is โchanging and nestle needs rapid change,” Navratil stated, according โto Reuters, on October 17, 2024.
The restructuring follows the recent โdeparture ofโ former CEO Laurent Freixe โin โSeptember, citing โpersonal โreasons, and the early resignation of Board Chairmanโฃ Paul โBulcke two weeks later, replaced by former Inditex chairman Pablo Isla.
Nestle anticipates organic sales growth will accelerate โขin 2025โ compared to 2024,โฃ and projects a basic trading operatingโ profit margin exceeding 16% andโค 17% inโฃ the medium term. The company’s margin projections factor in โthe impact of a 39% import tariff on Swiss โคgoods entering the US, implemented in August. Approximately โค700 million โSwiss โคfrancs โฃin cost savings are expected in โ2025,with the โmajority of the โข3 billion Swissโค francs in savings realized between 2026 and 2027.
(rea/rrd)
