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Food and beverage giant Nestlé has declared it will eliminate sixteen thousand jobs over the next two years, as the recently appointed chief executive Philipp Navratil drives a plan to concentrate on products offering the “most lucrative outcomes”.

This multinational corporation must “adapt more quickly” to keep pace with a evolving marketplace and implement a “achievement-focused approach” that rejects declining competitive position, according to the CEO.

He replaced former CEO Laurent Freixe, who was let go in the ninth month.

The layoff announcement were made public on Thursday as Nestlé announced better performance metrics for the first nine months of 2025, with expanded revenue across its key product lines, encompassing coffee and sweets.

The world's largest consumer packaged goods corporation, this industry leader operates a multitude of product lines, among them well-known names in coffee and snacks.

Nestlé aims to get rid of 12,000 professional positions on top of 4,000 additional positions throughout the organization within the next two years, it stated officially.

The workforce reduction will result in savings of the food giant about CHF 1 billion per annum as part of an sustained expense reduction program, it said.

Nestlé's share price rose 7.5% shortly after its quarterly update and job cuts were revealed.

Mr Navratil stated: “We are building a corporate environment that welcomes a performance mindset, that refuses to tolerate losing market share, and where winning is rewarded... The world is changing, and we must adapt more rapidly.”

Such change would encompass “tough but required choices to reduce headcount,” he noted.

Market analyst a financial commentator said the update suggested that Mr Navratil seeks to “bring greater transparency to aspects that were once ambiguous in Nestlé's cost-saving plans.”

The job cuts, she noted, are likely an effort to “adjust outlooks and regain market faith through measurable actions.”

Mr Navratil's predecessor was terminated by the company in early September after an investigation into internal complaints that he omitted to reveal a romantic relationship with a immediate staff member.

Its departing chairman Paul Bulcke moved up his exit timeline and stepped down in the corresponding timeframe.

Sources indicated at the time that shareholders blamed Mr Bulcke for the company's ongoing problems.

Last year, an investigation discovered Nestlé baby food products marketed in emerging markets contained unhealthily high levels of sweeteners.

The study, by a Swiss NGO and the International Baby Food Action Network, determined that in numerous instances, the same products available in developed nations had no added sugar.

• The corporation operates hundreds of product lines globally.
• Job cuts will affect sixteen thousand workers during the coming 24 months.
• Savings are anticipated to reach CHF 1 billion per year.
• Stock value climbed 7.5% following the news.