Nestlé has announced that it will reduce around 16,000 jobs worldwide over the next two years as part of its ongoing restructuring under the ‘Fuel for Growth’ program. The move is aimed at improving operational efficiency, streamlining processes, and freeing up resources for accelerated innovation and investment in high-growth areas.
The Swiss food giant said the decision, which it described as “hard but necessary,” forms part of its plan to increase its cost savings target to CHF 3.0 billion by the end of 2027, up from CHF 2.5 billion previously. Approximately 12,000 of the roles affected will be white-collar professionals across geographies and functions, while another 4,000 positions will be reduced in manufacturing and supply chain. The company expects annual savings of CHF 1.0 billion by 2027 from these measures.
Nestlé’s latest financial update for the first nine months of 2025 showed organic growth of 3.3%, driven by a 0.6% real internal growth (RIG) and 2.8% pricing. The third quarter recorded stronger momentum with organic growth rising to 4.3%, led by coffee, confectionery, and PetCare. Reported sales, however, dipped by 1.9% to CHF 65.9 billion, affected by currency fluctuations and weaker performance in Greater China.
The company reiterated its commitment to long-term growth and shareholder value, maintaining its 2025 guidance with expected organic sales improvement and an underlying trading operating profit (UTOP) margin of at least 16%.
Philipp Navratil, Nestlé CEO, said, “Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum.”
“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns. We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation.” he added.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency. The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.” he said.
