Nestlé Mass Layoffs: 16K Jobs Vanish as Analysts Hail Fuel to Turnaround Fire

In a stunning first move, new Nestlé CEO Philipp Navratil announced a massive overhaul on Thursday, swinging the axe on 16,000 jobs.

The world's largest packaged food company is desperately seeking to slash costs and win back the faith of its investors. The cuts represent a staggering 5.8% of Nestlé's global workforce of approximately 277,000 employees.

'The world is changing, and Nestlé needs to change faster', Navratil declared.

Why Thousands of Jobs Are on the Chopping Block

The Swiss maker of KitKat chocolate bars and Nespresso coffee has been fighting to reverse stalling sales growth and a sliding share price.

Navratil confirmed the company has raised its cost-savings target from 2.5 billion Swiss francs to 3 billion Swiss francs (£2.76 billion, $3.33 billion) by the end of 2027.

The cuts include 12,000 white-collar roles over the next two years, plus a further 4,000 positions from ongoing initiatives in manufacturing and the supply chain.

How a Leadership Crisis Paved the Way for Change

This dramatic efficiency push follows a period of unprecedented turmoil in the company's leadership.

Navratil's predecessor, Laurent Freixe, was fired in September over an undisclosed relationship with a direct report. Just two weeks later, Chairman Paul Bulcke stepped down early, making way for former Inditex chief Pablo Isla.

This shake-up comes as the food giant grapples with fragile consumer confidence, rising costs, increased debt, and the impact of US import tariffs.

Will This Gamble Finally Reignite Growth?

Nestlé's quarterly results 'add fuel to the turnaround fire', Bernstein analysts wrote in a note, calling the job cuts a 'significant surprise'.

A 1.5% rise in real internal growth, a key measure of sales volumes, beat analysts' expectations and may offer Navratil breathing space. 'We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded', Navratil stated.

The company also confirmed that strategic reviews of its waters, premium beverages, and low-growth vitamins and supplements brands are still ongoing.

Despite the upheaval, the Swiss company maintained its 2025 outlook, with the bulk of the cost savings, around £2.76 billion ($3.33 billion), expected to materialise in 2026–27.