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Global consumer goods leader the Swiss conglomerate stated it will eliminate 16,000 positions during the upcoming biennium, as its new CEO Philipp Navratil drives a initiative to concentrate on products offering the “greatest profit margins”.

The Swiss company has to “evolve at a quicker pace” to stay aligned with a dynamic global environment and embrace a “performance mindset” that does not accept losing market share, said Mr Navratil.

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

The layoff announcement were revealed on Thursday as Nestlé shared better revenue numbers for the first three-quarters of 2025, with increased product movement across its key product lines, including beverages and confectionery.

The world's largest consumer packaged goods firm, Nestlé manages numerous labels, among them its coffee, chocolate, and food brands.

The company plans to eliminate 12,000 administrative roles on top of four thousand further jobs throughout the organization during the next biennium, it announced publicly.

The workforce reduction will result in savings of the corporation around CHF 1 billion annually as part of an sustained expense reduction program, it confirmed.

The company's stock value rose 7.5% following its quarterly update and layoff announcement were announced.

Nestlé's leader said: “We are fostering a culture that welcomes a achievement-oriented approach, that does not accept losing market share, and where winning is rewarded... The world is changing, and Nestlé needs to change faster.”

Such change would encompass “hard but necessary actions to cut staff numbers,” he added.

Market analyst a financial commentator said the update signalled that Nestlé's leader aims to “enhance clarity to aspects that were formerly less clear in Nestlé's cost-saving plans.”

The job cuts, she noted, seem to be an initiative to “recalibrate projections and restore shareholder trust through measurable actions.”

The former CEO was terminated by Nestlé in early September after an investigation into reports from staff that he did not disclose a romantic relationship with a direct subordinate.

The company's outgoing chair Paul Bulcke brought forward his exit timeline and stepped down in the corresponding timeframe.

Media stated at the period that stakeholders blamed Mr Bulcke for the corporation's persistent issues.

The previous year, an study revealed its baby formula and foods marketed in low- and middle-income countries had excessive amounts of sugar.

The analysis, by a Swiss NGO and the International Baby Food Action Network, found that in several situations, the equivalent goods available in affluent markets had no added sugar.

• The corporation owns numerous brands worldwide.
• Workforce reductions will involve 16,000 workers during the upcoming biennium.
• Cost reductions are anticipated to total one billion Swiss francs annually.
• Stock value climbed 7.5% post the announcement.