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Food and beverage giant the Swiss conglomerate announced it will eliminate sixteen thousand jobs during the upcoming biennium, as the recently appointed chief executive Philipp Navratil advances a initiative to focus on products offering the “greatest profit margins”.

The Swiss company must “evolve at a quicker pace” to stay aligned with a changing world and adopt a “performance mindset” that refuses to tolerate losing market share, according to the CEO.

His appointment followed former CEO the previous leader, who was let go in last fall.

The layoff announcement were revealed on Thursday as Nestlé reported improved revenue numbers for the initial three quarters of 2025, with higher sales across its major categories, encompassing beverages and confectionery.

Globally dominant food & beverage company, Nestlé operates numerous brands, including its coffee, chocolate, and food brands.

The company plans to remove twelve thousand administrative jobs on top of 4,000 additional positions across the board within the next two years, it announced publicly.

The workforce reduction will result in savings of the consumer goods leader about CHF 1 billion each year as within an sustained expense reduction program, it said.

Its equity price was up seven and a half percent following its trading update and layoff announcement were made public.

Nestlé's leader commented: “We are fostering a corporate environment that welcomes a achievement-oriented approach, that does not accept market share declines, and where winning is rewarded... The marketplace is evolving, and we must adapt more rapidly.”

Such change would include “hard but necessary choices to trim the workforce,” he noted.

Equity analyst a financial commentator said the report indicated that Mr Navratil wants to “increase openness to areas that were once ambiguous in the company's efficiency strategy.”

The workforce reductions, she explained, appear to be an effort to “recalibrate projections and rebuild investor confidence through concrete measures.”

Mr Navratil's predecessor was dismissed by the company in the beginning of the ninth month following a probe into internal complaints that he omitted to reveal a private liaison with a junior employee.

The company's outgoing chair the ex-chairman brought forward his exit timeline and stepped down in the same month.

It was reported at the time that shareholders attributed responsibility to the outgoing leader for the company's ongoing problems.

The previous year, an investigation discovered its baby formula and foods available in low- and middle-income countries included unhealthily high levels of sugar.

The study, carried out by advocacy groups, found that in several situations, the same products marketed in wealthy countries had no added sugar.

• Nestlé manages a wide array of product lines worldwide.
• Job cuts will affect sixteen thousand employees over the coming 24 months.
• Expense cuts are estimated to amount to 1bn SFr per year.
• Stock value rose seven and a half percent post the update.