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Layoffs

Nestle to Cut 16,000 Jobs as Part of Expanded Cost-Savings Programme

Strategic Insights

— 1 min read

Nestle SA is undergoing significant restructuring as part of its efforts to accelerate growth momentum and reduce costs. The company has announced that it will eliminate around 16,000 jobs globally over the next two years, with the aim of generating annual savings of CHF1.0 billion by 2027. This decision comes after Nestle reported a slight decline in nine-month sales, which the company attributes to currency movements amid a strong Swiss franc.

As part of the cost-saving programme, Nestle will cut around 12,000 white-collar roles across all functions and regions, as well as 4,000 positions in manufacturing and supply chain. The company has raised its overall cost-savings target to CHF3.0 billion by the end of 2027, up from CHF2.5 billion previously. Chief Executive Officer Philipp Navratil emphasized the need for the company to adapt to changing market conditions, stating, "The world is changing, and Nestle needs to change faster."

Key Takeaways:

  • Nestle will eliminate 16,000 jobs globally over the next two years as part of an expanded cost-savings programme.
  • The cuts will include around 12,000 white-collar roles and 4,000 positions in manufacturing and supply chain.
  • The reductions are expected to generate annual savings of CHF1.0 billion by 2027.
  • Nestle's overall cost-savings target has been raised to CHF3.0 billion by the end of 2027.
  • The company aims to accelerate growth momentum and secure its future as a leader in the industry.

Statistics:

  • Nestle will eliminate 16,000 jobs globally over the next two years.
  • The cuts will affect around 12,000 white-collar roles.
  • 4,000 positions will be cut in manufacturing and supply chain.
  • Annual savings of CHF1.0 billion are expected by 2027.
  • Nestle's overall cost-savings target is CHF3.0 billion by the end of 2027.
  • Sales for the first nine months of 2025 were CHF65.87 billion, down 1.9% from CHF67.15 billion a year earlier.

Sources:

  • Alliance News: "Nestle to Cut 16,000 Jobs as Part of Expanded Cost-Savings Programme" (Copyright 2025 Alliance News Ltd. All Rights Reserved.)
  • Nestle SA: Press release (no date provided)

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