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Food and beverage giant the Swiss conglomerate has declared it will cut 16,000 positions during the upcoming biennium, as the recently appointed chief executive Philipp Navratil pushes a plan to focus on products offering the “greatest profit margins”.

The Swiss company needs to “change faster” to keep pace with a evolving marketplace and embrace a “performance mindset” that does not accept losing market share, according to the CEO.

He took over from ex-chief executive Laurent Freixe, who was let go in September.

The job cuts were disclosed on Thursday as the corporation reported stronger sales figures for the first three-quarters of 2025, with expanded sales across its key product lines, including beverages and confectionery.

The world's largest food & beverage company, this industry leader owns a multitude of brands, like its coffee, chocolate, and food brands.

Nestlé intends to eliminate twelve thousand white collar jobs on top of 4,000 other roles throughout the organization within the next two years, it said in a statement.

These job cuts will result in savings of the consumer goods leader around one billion Swiss francs annually as part of an ongoing cost-savings effort, it confirmed.

Nestlé's share price was up seven and a half percent soon after its trading update and layoff announcement were made public.

Nestlé's leader stated: “We are building a culture that adopts a performance mindset, that does not accept losing market share, and where winning is rewarded... The marketplace is evolving, and the company requires accelerated transformation.”

Such change would include “tough but required actions to reduce headcount,” he added.

Financial expert Diana Radu stated the report signalled that Nestlé's leader aims to “enhance clarity to areas that were previously more opaque in Nestlé's cost-saving plans.”

These layoffs, she said, seem to be an attempt to “recalibrate projections and restore shareholder trust through concrete measures.”

The former CEO was sacked by Nestlé in early September after an investigation into reports from staff that he omitted to reveal a personal involvement with a direct subordinate.

Its departing chairman the ex-chairman brought forward his departure date and left his post in the corresponding timeframe.

It was reported at the period that stakeholders attributed responsibility to the outgoing leader for the company's ongoing problems.

Last year, an investigation found infant nutrition items from the company available in developing nations contained undesirably high quantities of added sugars.

The study, by a Swiss NGO and the International Baby Food Action Network, determined that in numerous instances, the identical items sold in affluent markets had no added sugar.

• Nestlé manages hundreds of labels globally.
• Layoffs will affect 16,000 employees during the upcoming biennium.
• Savings are projected to reach one billion Swiss francs each year.
• Stock value rose significantly post the update.