Nestlé to cut 16,000 jobs over the next two years

Milan, 16 October (LaPresse) – Nestlé plans to cut 16,000 jobs globally over the next two years. This was announced by CEO Philipp Navratil, who was appointed in September following the dismissal of Laurent Freixe. In the first nine months, turnover fell by 1.9% to 65.9 billion Swiss francs. Organic sales growth was 3.3%, with positive trends in all regions and globally managed businesses. Real internal growth strengthened to 0.6%, while prices remained stable at 2.8%. Currency fluctuations had a negative impact of 5.4% and net acquisitions had a positive impact of 0.1%. The workforce reduction will affect approximately 12,000 employees in various functions and geographies, with annual savings of CHF 1 billion by the end of 2027 (double the original plan of CHF 0.5 billion), with related one-off restructuring costs expected to be double the annual savings. There will be a further reduction of around 4,000 employees as part of ongoing productivity initiatives in manufacturing and the supply chain. ‘The world is changing and Nestlé must change faster. This will involve difficult but necessary decisions to reduce our workforce over the next two years. We will do this with respect and transparency. Together with other measures, we are working to substantially reduce our costs and are today increasing our savings target to CHF 3.0 billion by the end of 2027,’ said Navratil.