Nestlé to Lay Off 16,000 Employees Globally in Major Shake-Up

Restructuring plan aims to streamline operations and refocus on high-performing brands amid falling profits

Nestlé, the world’s largest food and beverage company, has announced a sweeping global restructuring plan that includes cutting 16,000 jobs over the next two years. The move is part of a larger effort to improve efficiency, restore profitability and refocus on its best-performing product lines.

Massive Job Cuts Worldwide
Of the 16,000 job cuts, about 12,000 will affect white-collar employees working in management and office positions, while the remaining 4,000 will come from manufacturing, logistics, and supply chain roles. Nestlé stated that these changes are necessary to simplify operations and invest more heavily in key product areas, including coffee, confectionery, and premium goods.

The company is also in the process of reviewing its water, premium beverage, and vitamins and supplements divisions to identify which areas offer the most growth potential.

A Strategic Response to Declining Growth
Nestlé’s restructuring comes at a time when the company is facing slower sales growth and falling share prices. Since 2022, its share price has dropped by about 35%. Although sales increased by 2.2% in 2024, it was the weakest growth rate in years. However, sales picked up slightly in 2025, with a 3.3% increase in the first nine months of the year.

The company reported net sales of CHF 65.9 billion (€70.96 billion) during the same period a 1.9% decrease from the previous year, largely due to currency fluctuations and trade pressures.

External Pressures Mount
Rising operational costs, global trade barriers, and inflation have all put pressure on Nestlé’s profit margins. For example, the recent 39% U.S. import tariff on Swiss goods has made it harder for Nestlé to maintain its competitive pricing in one of its biggest markets.

Despite these challenges the company expects the job cuts and other restructuring measures to save around 1 billion Swiss francs annually. These savings will help Nestlé reach its total cost-saving goal of 3 billion Swiss francs by 2027.

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Management Changes Add to the Shake-Up
The restructuring announcement follows a turbulent period in Nestlé’s top management. Former CEO Laurent Freixe was dismissed in September after violating company policy by failing to disclose a relationship with a subordinate. Shortly after, long-time chairman Paul Bulcke stepped down earlier than expected, paving the way for former Inditex CEO Pablo Isla to take his place.

Philipp Navratil, who replaced Freixe as CEO, has been the driving force behind the restructuring. He emphasized the need for the company to “change faster” in order to keep up with the rapidly evolving global market. Navratil has also pushed for a “performance mindset” across the organization to improve competitiveness and innovation.

Positive Signs Amid the Upheaval
Despite the layoffs and leadership changes, Nestlé’s financial results for the first nine months of 2025 have exceeded expectations. Organic sales grew across major product lines, including Nescafé coffee, KitKat chocolate, and Maggi cooking products.

In the third quarter alone, the company achieved a 1.5% increase in real internal growth well above the 0.3% growth predicted by analysts. This performance has given investors renewed confidence, pushing Nestlé’s stock up more than 8% following the restructuring announcement.

Outlook for the Future
Nestlé remains optimistic about the future, maintaining its full-year guidance and forecasting stronger organic sales growth compared to 2024. The company aims to achieve an operating margin of at least 16% as it focuses on premium and high-demand products.

Chris Beckett, a consumer staples analyst at Quilter Cheviot, commented that “Management have grand ambitions to bring Nestlé back to where it has historically been, but for now the company is a work in progress.”

Still, Beckett added that the recent financial rebound is a positive sign. “A few more quarters like this one may just help complete that story and put the company back on a trajectory of high-quality growth.”

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