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Global consumer goods leader Nestlé stated it will eliminate 16,000 positions over the next two years, as the recently appointed chief executive Philipp Navratil pushes a initiative to focus on products offering the “greatest profit margins”.

This multinational corporation must “evolve at a quicker pace” to stay aligned with a evolving marketplace and embrace a “performance mindset” that refuses to tolerate losing market share, said Mr Navratil.

He took over from former CEO Laurent Freixe, who was let go in September.

The layoff announcement were made public on Thursday as the corporation reported improved sales figures for the first nine months of 2025, with higher sales across its primary segments, including coffee and sweets.

The world's largest packaged food and drink corporation, Nestlé operates a multitude of labels, like its coffee, chocolate, and food brands.

The company plans to remove twelve thousand administrative roles alongside 4,000 further jobs across the board within the next two years, it announced publicly.

These job cuts will result in savings of the corporation approximately CHF 1 billion annually as a component of an ongoing cost-savings effort, it confirmed.

Its equity price increased seven and a half percent following its performance report and layoff announcement were announced.

The CEO said: “We are building a culture that welcomes a results-driven attitude, that does not accept competitive setbacks, and where success is recognized... Global dynamics are shifting, and we must adapt more rapidly.”

Such change would involve “difficult yet essential choices to reduce headcount,” he noted.

Equity analyst a financial commentator said the update suggested that Mr Navratil aims to “enhance clarity to aspects that were once ambiguous in the company's efficiency strategy.”

The workforce reductions, she noted, appear to be an attempt to “adjust outlooks and rebuild investor confidence through tangible steps.”

Mr Navratil's predecessor was sacked by Nestlé in the beginning of the ninth month subsequent to an inquiry into reports from staff that he did not disclose a personal involvement with a direct subordinate.

The former board leader Paul Bulcke brought forward his leaving schedule and stepped down in the same month.

Media stated at the time that stakeholders blamed Mr Bulcke for the firm's continuing challenges.

Last year, an study revealed its baby formula and foods available in low- and middle-income countries included undesirably high quantities of added sugars.

The study, by a Swiss NGO and the International Baby Food Action Network, found that in many cases, the identical items sold in affluent markets had no extra sugars.

• The corporation manages a wide array of labels worldwide.
• Job cuts will affect sixteen thousand staff members over the upcoming biennium.
• Savings are estimated to total 1bn SFr annually.
• Stock value rose seven and a half percent after the announcement.