Nestle, the Swiss food and beverage titan behind brands like Nespresso, Kit Kat, Perrier, and Purina, announced on Thursday a sweeping plan to cut 16,000 jobs worldwide over the next two years. The decision, driven by new CEO Philipp Navratil, who assumed leadership in early September, aims to accelerate the company’s transformation amid shifting market dynamics and economic pressures.

“The world is changing, and Nestle needs to change faster,” Navratil stated, describing the layoffs as “hard but necessary decisions” to streamline operations. Of the 16,000 positions, 12,000 are white-collar roles, with an additional 4,000 cuts already underway in production and supply chain sectors. The restructuring is projected to save one billion Swiss francs, contributing to a revised total savings target of three billion Swiss francs by 2027, up from 2.5 billion.

The announcement aligns with Nestle’s nine-month financial results, which revealed a 1.9% sales decline to 65.9 billion Swiss francs (approximately $83 billion), despite 3.3% organic growth driven by 2.8% price increases. Nestle India reported a 17% year-on-year drop in Q2 FY26 net profit, posting Rs 743 crore, reflecting broader economic challenges and ongoing restructuring efforts.

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Navratil’s leadership comes at a turbulent time, following the abrupt dismissal of the previous CEO over a workplace relationship and the early departure of the company chairman. Compounded by a 2024 bottled water scandal in France, Nestle faces mounting pressure to stabilize operations and restore investor confidence through its aggressive cost-cutting and transformation strategy.

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