nestlé to Cut 16,000 Jobs as Cost-Cutting Measures intensify
Zurich, Switzerland – Food and beverage giant Nestlé announced plans to reduce its global workforce by approximately 16,000 employees, or roughly 6% of its total staff, as part of a broader restructuring aimed at boosting operational efficiency and freeing up capital for strategic investments. The cuts will impact roles across the company, with a focus on streamlining operations and automating processes.
The move signals a sharpened focus on profitability and growth acceleration under newly appointed CEO philipp Navartil. Nestlé is concurrently increasing its savings target to 3 billion Swiss francs (approximately NOK 38 billion) by the end of 2027,up from a previous goal of 2.5 billion swiss francs.This reflects a commitment to “do more and move faster” and to be ”bolder” in large-scale investments for future growth, according to Navartil.
Despite the workforce reduction, Nestlé reported third-quarter sales of 21.6 billion Swiss francs (approx. NOK 273.4 billion), a slight decrease from 22.1 billion in the same period last year. Though, the company experienced organic growth of 4.3%, driven primarily by strong performance in its coffee and chocolate divisions. Shares jumped 6.6% in early trading on the Zurich stock exchange following the proclamation.
Nestlé’s market capitalization stands at 210.7 billion Swiss francs (approx.NOK 2,664 billion), dwarfing the market value of Equinor, Norway’s largest company, which is currently valued at approximately NOK 601 billion. The restructuring is part of a wider trend within the consumer goods sector,as companies grapple with rising costs,shifting consumer preferences,and the need to invest in innovation and digital change.
