Nestle to cut around 6% of its workforce as new CEO looks to accelerate turnaround

Nestle said Thursday it will cut 16,000 jobs as the firm’s new CEO Philipp Navratil looks to accelerate a turnaround at the consumer goods giant.

In a bid to become improve operational efficiency, the firm said it will cut 12,000 white-collar jobs and a further 4,000 roles will be reduced over the next two years.

Under its former CEO Laurent Freixe, Nestle had already announced a cost-savings programme worth 2.5 billion Swiss francs ($3.14 billion). This has now been accelerated to 3 billion Swiss francs by the end of 2027.

The company posted a better-than-expected organic growth rate of 4.3% in the third quarter as it battles an uncertain consumer outlook amid U.S. tariffs and an increase in raw material prices, such as cocoa and coffee beans.

Notably, Real Internal Growth (RIG) returned to positive territory in the third quarter — up 0.6% — as the maker of Nespresso and KitKat saw growth investments pay off, also helped by easier comparisons.