{"id":53944,"date":"2026-04-22T23:23:49","date_gmt":"2026-04-22T23:23:49","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/53944\/"},"modified":"2026-04-22T23:23:49","modified_gmt":"2026-04-22T23:23:49","slug":"nestle-to-slash-16000-jobs-in-cost-cutting-push","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/53944\/","title":{"rendered":"Nestl\u00e9 to Slash 16,000 Jobs in Cost-Cutting Push"},"content":{"rendered":"

The global food giant Nestl\u00e9 said on Thursday that it would shed about 16,000 jobs over the next two years, accelerating a cost-cutting program six weeks after the company fired its chief executive<\/a>.<\/p>\n

Philipp Navratil, who took over as chief executive last month, announced the changes as part of a wider move to cut 3 billion Swiss francs, or $3.7 billion, in spending by 2027. A previous plan called for 2.5 billion francs in cuts over the same time frame.<\/p>\n

\u201cThe world is changing, and Nestl\u00e9 needs to change faster,\u201d Mr. Navratil said in a statement<\/a>. \u201cThis will include making hard but necessary decisions\u201d<\/p>\n

Nestl\u00e9, which counts Nespresso, KitKat, Toll House, Perrier and Purina among its 2,000 brands, is based in Switzerland and employs some 277,000 people around the globe. It said increased automatization and shared services among divisions would compensate for the lost workers.<\/p>\n

The cuts will affect workers around the world, with 12,000 of them in white-collar jobs, the company said.<\/p>\n

Nestl\u00e9 has been seeking to cut costs in the face of stalling growth and a drop in demand from China, which has led to increased pressure from investors.<\/p>\n

President Trump\u2019s sweeping tariffs on imports to the United States, including a tariff of 39 percent on Swiss goods<\/a>, added further challenges. The United States is Nestl\u00e9\u2019s largest market.<\/p>\n

Shares of Nestl\u00e9 rose more than 8 percent in trading in Zurich, as investors welcomed the moves after months of turmoil in the company\u2019s leadership.<\/p>\n

Mr. Navratil vowed to move Nestl\u00e9 forward by being \u201crigorous in our approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns.\u201d<\/p>\n

Analysts welcomed the renewed zeal. It comes as multinational consumer products companies, like Nestl\u00e9, are facing challenges like the jump in prices of raw materials, such as coffee and cocoa beans, as well as a shift in consumer preferences away from processed foods.<\/p>\n

After several months of largely negative headlines linked to internal scandals and personnel issues at Nestl\u00e9, the company\u2019s announcement on Thursday appeared to signal a shift in priorities to focus on sales and innovation, analysts at Vontobel, an international investment management firm based in Zurich, wrote in a note.<\/p>\n

They praised Mr. Navratil for \u201cgoing in the right direction\u201d and for his \u201cstrong focus on resource allocation, innovation and a performance mind-set.\u201d<\/p>\n

Mr. Navratil, a longtime Nestl\u00e9 executive, took over for Laurent Freixe<\/a>, who was forced out over an undisclosed relationship with a subordinate, which the company said was a breach of its code of conduct. Nestl\u00e9\u2019s chairman, Paul Bulcke, stepped down two weeks later and was replaced by Pablo Isla, a former chairman of the Spanish apparel company Inditex.<\/p>\n

On Thursday, the company reported a 4.3 percent increase in sales for the third quarter, driven by higher prices and overall sales volumes.<\/p>\n

Nestl\u00e9 maintained its growth outlook for 2025, expecting an improvement in sales from the previous year despite the negative effects of tariffs and exchange rates, which include the weakening of the U.S. dollar.<\/p>\n","protected":false},"excerpt":{"rendered":"The global food giant Nestl\u00e9 said on Thursday that it would shed about 16,000 jobs over the next…\n","protected":false},"author":2,"featured_media":53945,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[30354,10791,199,2044,5861,17],"class_list":{"0":"post-53944","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-nestle","8":"tag-layoffs-and-job-reductions","9":"tag-navratil","10":"tag-nestle","11":"tag-nestle-sa","12":"tag-philipp","13":"tag-switzerland"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116450942212119277","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/53944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=53944"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/53944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/53945"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=53944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=53944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=53944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}