Nestlé Job Cuts: 16,000 Jobs Eliminated for Sales Growth
Nestlé Restructuring: A Deeper Look
Nestlé, owner of brands like kitkat, Nescafé, Häagen-Dazs, and Nespresso, is undertaking a major restructuring plan. This includes significant job cuts and increased cost-saving targets.
Job Cuts Breakdown
| Role Type | Number of Jobs Cut | Percentage of Workforce |
|---|---|---|
| White-Collar Professionals | 12,000 | ~4% |
| Manufacturing & Supply Chain | 4,000 | ~2% |
| Total | 16,000 | ~6% |
Financial Performance & Targets
- Sales (First 9 Months 2025): SFr65.9bn (a 1.9% year-on-year fall).
- organic Sales Growth: 3.3%
- cost Savings Target (by 2027): SFr3bn (£2.8bn) (increased from SFr2.5bn).
- Sales Growth Drivers: Primarily fueled by inflationary price rises, notably in coffee and confectionery.
Leadership Changes
- New CEO: Philipp Navratil (replaced Laurent Freixe in October 2025).
- Former CEO (Laurent Freixe): Fired for failing to disclose a romantic relationship with a subordinate.
- Chair Resignation: Paul Bulcke resigned two weeks after Freixe’s firing.
The company is prioritizing investments in areas with the highest potential returns and aims to foster a more performance-driven culture.