Nestlé to Slash 16,000 Jobs Under New CEO to Boost Sales Growth

Nestlé, the world's largest packaged food company, will lay off 16,000 employees globally in a bold move by newly appointed CEO Philipp Navratil to ramp up growth and drive efficiency. The shake-up comes as the company battles rising costs, a dip in volumes, and mounting investor pressure.

CEO Navratil Commits to Driving Sales and Efficiency

Philipp Navratil, formerly head of Nestlé’s Nespresso division, assumed the role of CEO following the exit of Laurent Freixe in September 2025. Under his leadership, Nestlé reported a 1.5% increase in real internal growth (RIG) for Q3, outperforming expectations and providing a springboard for future strategy shifts. To sustain momentum, Navratil is prioritising cost-saving and volume-led growth initiatives.

Breakdown of the 16,000 Job Cuts

Nestlé will reduce its global workforce by 16,000. This includes 12,000 white-collar positions primarily in administrative and corporate departments. An additional 4,000 roles will be cut from manufacturing and supply chain areas. 

The move comes as part of Nestlé’s streamlining effort to adapt to changing market conditions and consumer behaviour. The company currently employs around 2,77,000 worldwide.

Raising Cost-Saving Targets Amid Market Pressure

As operational costs rise and debt levels climb, Nestlé is increasing its savings target to 3 billion Swiss francs (approximately $3.77 billion or ₹27,000 crore) by 2027. This is a boost from the earlier target of 2.5 billion francs. The organisation is focusing on eliminating inefficiencies and directing funds into innovation and brand growth.

Read More:TCS Employees Count Drops Nearly by 20,000 in Q2FY26 Amid Restructuring

Leadership Changes Signal Strategic Overhaul

Nestlé has undergone a leadership transition as Chairman Paul Bulcke stepped down early, succeeded by Pablo Isla, former Inditex chief. Navratil has promised a culture change, stressing performance and market share retention. He affirms that Nestlé must accelerate transformation to meet evolving business challenges.

Conclusion

Nestlé's announcement to lay off 16,000 employees is a bold restructuring step under CEO Philipp Navratil. The company aims to boost efficiency, revive sales volumes, and meet a ₹27,000 crore cost-saving target by 2027. With leadership changes at the top, Nestlé is positioning itself for a strong turnaround in the competitive global food sector.

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