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Global consumer goods leader Nestlé announced it will remove 16,000 jobs over the next two years, as its new CEO Philipp Navratil pushes a strategy to focus on products offering the “greatest profit margins”.

The Swiss company must “evolve at a quicker pace” to remain competitive in a changing world and adopt a “achievement-focused approach” that rejects ceding ground to competitors, according to the CEO.

He took over from ex-chief executive Laurent Freixe, who was dismissed in the ninth month.

These workforce reductions were revealed on the fourth weekday as Nestlé reported stronger performance metrics for the initial three quarters of 2025, with expanded product movement across its primary segments, including beverages and confectionery.

The biggest food & beverage corporation, this industry leader owns hundreds of labels, among them Nescafé, KitKat and Maggi.

Nestlé intends to eliminate 12,000 white collar positions on top of 4,000 additional positions company-wide within the next two years, it announced publicly.

These job cuts will result in savings of the consumer goods leader around CHF 1 billion per annum as a component of an ongoing cost-savings effort, it stated.

Its equity price rose by more than seven percent soon after its quarterly update and layoff announcement were made public.

Nestlé's leader commented: “We are cultivating a organizational ethos that welcomes a performance mindset, that does not accept losing market share, and where achievement is incentivized... The world is changing, and we must adapt more rapidly.”

Such change would include “difficult yet essential actions to trim the workforce,” he said.

Market analyst a financial commentator stated the report indicated that the new CEO wants to “enhance clarity to aspects that were formerly less clear in its expense reduction initiatives.”

The workforce reductions, she explained, are likely an effort to “adjust outlooks and regain market faith through measurable actions.”

His forerunner was sacked by the company in the start of last fall following a probe into whistleblower allegations that he failed to report a romantic relationship with a direct subordinate.

The former board leader the ex-chairman brought forward his exit timeline and left his post in the identical period.

It was reported at the period that shareholders blamed Mr Bulcke for the company's ongoing problems.

Last year, an inquiry discovered its baby formula and foods sold in low- and middle-income countries had undesirably high quantities of sugar.

The analysis, conducted by non-profit organizations, established that in many cases, the equivalent goods marketed in affluent markets had no added sugar.

• Nestlé owns a wide array of labels worldwide.
• Job cuts will affect 16,000 staff members throughout the next two years.
• Cost reductions are estimated to reach CHF 1 billion each year.
• Stock value increased 7.5% post the update.