VEVEY / LONDON (IT BOLTWISE) – Nestlé is planning a major restructuring that will cut 16,000 jobs. The new CEO Philipp Navratil wants to increase efficiency and accelerate the company’s growth. The announcement caused Nestlé shares to rise 6%.
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Nestlé, the world’s leading consumer goods company based in Vevey, Switzerland, has announced a significant restructuring that includes 16,000 job cuts. This measure is part of the strategy of the new CEO Philipp Navratil, who wants to make the company more efficient and accelerate growth. The announcement caused Nestlé shares to rise 6%, reflecting investor confidence in the company’s new direction.
The job cuts primarily affect 12,000 office jobs, while a further 4,000 jobs are to be eliminated over the next two years. This decision is part of a larger plan to reduce operational costs and increase efficiency. Under previous CEO Laurent Freixe, Nestlé had already announced a cost-cutting program worth 2.5 billion Swiss francs, which has now been expanded to 3 billion Swiss francs by the end of 2027.
The restructuring comes in a challenging economic environment characterized by uncertain consumer prospects, US tariffs and rising commodity prices. Despite these challenges, Nestlé recorded better-than-expected organic growth of 4.3% in the third quarter. What is particularly noteworthy is that real internal growth (RIG) is positive again after a decline in the second quarter, increasing by 1.5%. This is due to successful growth investments and cheaper comparables.
While the company is making progress in many areas, business in the Greater China region remains challenging. The region detracted 80 basis points from organic growth and 40 basis points from RIG. However, Nestlé has stressed that new management structures have been implemented in China to improve performance. Analysts are optimistic that the new leadership under Navratil and chairman-designate Pablo Isla can regain investor confidence.
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