{"id":59554,"date":"2026-05-04T03:44:59","date_gmt":"2026-05-04T03:44:59","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/59554\/"},"modified":"2026-05-04T03:44:59","modified_gmt":"2026-05-04T03:44:59","slug":"nestle-announces-job-cuts-amid-bold-restructuring-strategy","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/59554\/","title":{"rendered":"Nestl\u00e9 announces job cuts amid bold restructuring strategy"},"content":{"rendered":"<p>Nestl\u00e9 will cut 16,000 jobs over the next two years to support its CHF 3 billion (US$3.76 billion) savings target by 2027, CEO Philip Navratil has announced a month after taking office. The move is part of the company\u2019s Fuel for Growth program, which will sharpen its focus on operational efficiency and growth investments.<\/p>\n<p>The layoffs, comprising 12,000 office-based staff and 4,000 manufacturing and supply chain positions, spotlight the company\u2019s shift toward increased automation and technological advancements.<\/p>\n<p>Navratil, who <a href=\"https:\/\/www.foodingredientsfirst.com\/news\/nestle-names-navratil-ceo.html\" target=\"_blank\" rel=\"nofollow noopener\">succeeded<\/a> Laurent Freixe in September, calls the move to cut staff as a \u201chard but necessary\u201d decision.\u00a0<\/p>\n<p>\u201cAs Nestl\u00e9 moves forward, we will be rigorous in our approach to resource allocation, prioritizing 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.\u201d<\/p>\n<p>\u201cThe actions we are taking will secure Nestl\u00e9\u2019s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.\u201d<\/p>\n<p>Coffee and confectionery drive growth<\/p>\n<p>The FMCG giant reported total sales worth CHF 65.9 billion (US$82.76 billion) in the first nine months of 2025, representing a decrease of 1.9%. Organic growth was reported at 3.3%, mainly attributable to the coffee and confectionery categories.\u00a0<\/p>\n<p>Confectionery\u2019s organic growth of 8.0% was driven by pricing and led by KitKat, with strong double-digit growth in South Asia and Japan.<\/p>\n<p>Coffee grew at mid single-digit, driven by pricing. \u201cThe largest growth contributor was Nescaf\u00e9 soluble. Consumer traction was strong in investment areas of <a href=\"https:\/\/www.foodingredientsfirst.com\/news\/nescafe-espresso-concentrate-coffee-brews-barista-style-cold-coffee-for-at-home-market.html\" target=\"_blank\" rel=\"nofollow noopener\">Nescaf\u00e9 Espresso Concentrate<\/a> and ready-to-drink coffee,\u201d reads the 2025 sales report.<\/p>\n<p>Nestl\u00e9 recently <a href=\"https:\/\/www.foodingredientsfirst.com\/news\/nestle-freeze-drying-cold-coffee.html\" target=\"_blank\" rel=\"nofollow noopener\">spoke<\/a> with Food Ingredients First about the rising consumer demand for cold coffee and how its R&amp;D team tackles the clumping challenges in coffee using freeze-drying technology.<\/p>\n<p>According to the National Coffee Association USA, nearly 42% of Americans consumed cold coffee at least once weekly in 2023.\u00a0<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/05\/5f87d247-a2b0-4746-a614-c3dd10e31209nestle espresso concentrate being poured into a glass of milk.we.webp\" alt=\"pouring nespresso concentrate into a glass of milk\" style=\"width:700px\"\/>Consumer traction was strong in investment areas of Nescaf\u00e9 Espresso Concentrate and ready-to-drink coffee, says Nestl\u00e9\u2019s 2025 sales report (Image credit: Nestl\u00e9).<\/p>\n<p>Offsetting inflation challenges<\/p>\n<p>To combat cost inflation, Nestl\u00e9 implemented pricing adjustments across various product categories, driven by rising <a href=\"https:\/\/www.foodingredientsfirst.com\/key-interviews\/cocoa-prices-alt-cocoa-retail-sustainability.html\" target=\"_blank\" rel=\"nofollow noopener\">raw material<\/a> and energy costs due to global inflationary pressures.\u00a0<\/p>\n<p>However, the company only \u201cpassed on a fraction of the price increase to consumers,\u201d a Nestl\u00e9 spokesperson <a href=\"https:\/\/www.foodingredientsfirst.com\/news\/cocoa-price-surge-biden-attacks-shrinkflation-nestle-prioritizes-flavor-profiles.html\" target=\"_blank\" rel=\"nofollow noopener\">previously<\/a> told us.<\/p>\n<p>The report highlights that pricing contributed 2.8% to Nestl\u00e9\u2019s organic growth, allowing it to offset some inflationary impacts.<\/p>\n<p>\u201cPowdered and liquid beverages continue to be the largest category growth contributor with 7.5% organic growth, led by pricing as we took actions to address input cost inflation in coffee,\u201d reads the report.<\/p>\n<p>While the F&amp;B giant\u2019s milk products and ice cream experienced organic growth of 1.8%, led by dairy culinary brands Nestl\u00e9 and La Lechera, the prepared dishes and cooking aids segment reported slightly negative organic growth of 0.4%, driven by \u201cweakness in US Frozen Foods.\u201d<\/p>\n<p>The company notes that strong consumer demand and premium product offerings helped mitigate the risks associated with higher prices.<\/p>\n<p>In other cost-cutting news, beer brewer Heineken has announced a reorganization of its Amsterdam, Netherlands headquarters, which will affect approximately 400 jobs starting in 2026.<\/p>\n","protected":false},"excerpt":{"rendered":"Nestl\u00e9 will cut 16,000 jobs over the next two years to support its CHF 3 billion (US$3.76 billion)&hellip;\n","protected":false},"author":2,"featured_media":59555,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[126],"tags":[33087,33086,2005,199],"class_list":{"0":"post-59554","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-nestle","8":"tag-food-automation","9":"tag-fuel-for-growth","10":"tag-job-cuts","11":"tag-nestle"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116514254087137522","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/59554","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=59554"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/59554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/59555"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=59554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=59554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=59554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}