Nestle to Cut 16,000 Jobs Worldwide in Major Restructuring Plan

Nestle is the world’s biggest food and beverage company, has announced that it will cut 16,000 jobs across the globe over the next two years. This move is part of a major restructuring effort aimed at reducing costs and improving efficiency. It is one of the largest workforce reductions in the company’s history.

New CEO Launches “Fuel for Growth” Program

The decision comes under the leadership of Nestlé’s new CEO, Philipp Navratil, who has strengthened the company’s “Fuel for Growth” program. This plan is designed to make the company’s operations simpler, faster, and more efficient.

Nestlé now aims to save 3 billion Swiss francs by 2027, raising its earlier goal of 2.5 billion francs. The company plans to redirect its resources to business areas with higher growth and profit potential, such as nutrition, health, and premium products.

Jobs Affected Across All Divisions

Out of the 16,000 job cuts, about 12,000 will come from office and administrative roles, while 4,000 will affect manufacturing, supply chain, and logistics teams. The cuts represent roughly 6% of Nestlé’s global workforce, which currently stands at 277,000 employees.

CEO Philipp Navratil said that the world is changing rapidly, and Nestle must adapt more quickly. He added that this transformation would involve making difficult but necessary decisions, including reducing the company’s headcount.

Leadership Changes and Company Challenges

This restructuring follows recent leadership turmoil at Nestlé. Former CEO Laurent Freixe was removed in September after failing to disclose a personal relationship with an employee. Soon after, Chairman Paul Bulcke also resigned, marking a new phase for the company’s leadership.

Despite these internal challenges, Nestlé reported 1.5% real internal growth (RIG) in the third quarter, which exceeded market expectations. However, overall sales fell by 1.9%, mainly because of unfavourable currency exchange rates.

Industry experts believe that this large scale restructuring is a bold but needed step to rebuild investor trust and modernise Nestle’s global operations. The company hopes these changes will make it more competitive in a fast changing food and beverage market.

While the transformation is expected to bring long term benefits, the short term impact on employees and daily operations could be significant as Nestle adjusts to its new structure.

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