Nestlé has made a big announcement that it will cut about 16,000 jobs by 2027. The company’s goal is to save 3 billion francs and boost growth. Apparently, there are several other reasons for this massive cut, and the company would do it over the course of 2 years. So, which departments will be affected? Does that mean there will be no more hirings by Nestlé? What did the higher management say about the move? For all that, learn more.
What’s Happening?
Nestlé’s new CEO, Philipp Navratil, recently revealed that the company is restructuring and 16,000 jobs could fall victim. There are about 277,000 employees (according to reports by The Guardian), and about 6% of them will have to leave the company.
Who’s Affected the Most?
- White-collar jobs: About 12,000 of these cuts will be the office staff, managers, and other professional employees.
- Manufacturing and supply chain operations: Approximately 4,000 people are involved in producing and delivering Nestlé’s products.
There’s no clear indication of which countries will be most affected. About 4,200 people are working in the UK (especially in offices in Gatwick and a factory in York that makes KitKats).
Why Is This Happening?
Nestlé’s new CEO, Philipp Navratil, is clear about layoffs; he wants to cut costs and boost sales growth.
He said, “The world is changing and Nestlé needs to change faster.”
According to him:
- He aims to increase Nestlé’s efficiency by automating specific areas of work.
- He wants to make bold moves by creating new products and innovations.
- He envisions creating a company culture that focuses on performance and results.
- He says the company would reward employees for driving the company’s success.
- He says that these job cuts are a big part of Nestlé’s cost-saving plan.
- The company is looking to save 3 billion Swiss francs (about £2.8 billion) by 2027.
What Led Nestlé to Cut 16,000 Jobs?
- The leadership at Nestlé was shaken in September when its former CEO, Laurent Freixe, was fired for not disclosing a romantic relationship with his subordinate.
- Just a few weeks after this scandal, Chairman Paul Bulcke resigned, too.
- Amidst all this corporate drama, the company was struggling to increase sales and reduce debt.
- So, Nestlé’s new CEO, Philipp Navratil, came up with new plans for the company.
The Financial Picture
- Although Nestlé is the world’s largest food company, its sales fell 1.9% year-on-year in the first nine months of 2025. In actual numbers, this dip is 65.9 billion Swiss francs.
- The drop was due to foreign exchange rates that saw a 5.4% negative impact from currency fluctuations.
- Its organic sales rose by 3.3% (excluding the currency effects). Emerging markets, including India and Brazil, are experiencing 5.2% growth.
- And its developed markets, such as Europe and North America, grew by 2.1%.
However, this growth was primarily due to higher prices, rather than selling more products.
What Did the Experts Say?
Chris Beckett, an analyst at investment firm Quilter Cheviot, said that the company’s new CEO is doing what he can to stop Nestlé’s slow decline. According to him, the company has “big ambitions” to make a good comeback, and it’s a work in progress at the moment.
Vibhavari Madki
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