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Food and beverage giant Nestlé announced it will eliminate sixteen thousand positions during the upcoming biennium, as the recently appointed chief executive Philipp Navratil advances a strategy to concentrate on products offering the “most lucrative outcomes”.

The Swiss company has to “adapt more quickly” to stay aligned with a changing world and adopt a “achievement-focused approach” that does not accept losing market share, according to the CEO.

His appointment followed ex-chief executive the previous leader, who was let go in September.

The layoff announcement were revealed on Thursday as the corporation announced improved performance metrics for the first nine months of 2025, with expanded sales across its primary segments, such as hot drinks and snacks.

The world's largest consumer packaged goods corporation, this industry leader owns numerous brands, including Nescafé, KitKat and Maggi.

The company plans to get rid of twelve thousand administrative positions in addition to four thousand additional positions across the board within the next two years, it stated officially.

The workforce reduction will cut costs by the food giant approximately one billion Swiss francs annually as within an continuous efficiency drive, it said.

The company's stock value rose by more than seven percent following its trading update and layoff announcement were announced.

The CEO said: “We are fostering a culture that embraces a results-driven attitude, that will not abide competitive setbacks, and where winning is rewarded... Global dynamics are shifting, and the company requires accelerated transformation.”

This transformation would include “difficult yet essential actions to cut staff numbers,” he said.

Equity analyst a financial commentator remarked the update suggested that Mr Navratil wants to “increase openness to aspects that were previously more opaque in its expense reduction initiatives.”

The workforce reductions, she noted, seem to be an attempt to “recalibrate projections and restore shareholder trust through concrete measures.”

The former CEO was dismissed by Nestlé in the beginning of the ninth month subsequent to an inquiry into internal complaints that he did not disclose a romantic relationship with a direct subordinate.

Its departing chairman Paul Bulcke brought forward his departure date and left his post in the corresponding timeframe.

Sources indicated at the time that shareholders attributed responsibility to the outgoing leader for the firm's continuing challenges.

Last year, an inquiry found Nestlé baby food products marketed in developing nations included unhealthily high levels of added sugars.

The research, conducted by non-profit organizations, established that in numerous instances, the same products sold in wealthy countries had no extra sugars.

• The corporation owns numerous labels internationally.
• Workforce reductions will impact sixteen thousand staff members over the upcoming biennium.
• Cost reductions are anticipated to amount to 1bn SFr each year.
• Equity rose significantly after the news.