Nestlé will cut 16,000 jobs over the next two years, new chief executive officer Philipp Navratil said, as the world’s largest packaged food group seeks to sharpen efficiency and restore investor confidence.

The reductions, equal to about 5.8 per cent of the company’s roughly 277,000 staff, include 12,000 white‑collar roles and a further 4,000 positions across manufacturing and the supply chain. Navratil said Nestlé is lifting its cost‑saving goal to 3 billion Swiss francs by the end of 2027, up from 2.5 billion francs. “The world is changing, and Nestlé needs to change faster,” he said. “This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency.”

The announcement accompanied quarterly figures that offered some respite. Real internal growth rose 1.5 per cent in the third quarter, above analyst expectations of 0.3 per cent, with pricing‑led gains in coffee and confectionery. Organic sales for the quarter increased 4.3 per cent, while nine‑month reported sales fell 1.9 per cent to 65.9 billion Swiss francs, largely due to foreign exchange effects. CFO Anna Manz acknowledged challenges in Greater China, saying Nestlé had focused too heavily on distribution at the expense of demand creation. “So what you see in China is us correcting that and actually to consolidate our distribution and make it more efficient, while we build this consumer demand.”

Navratil, formerly head of Nespresso, took over in September following the dismissal of Laurent Freixe for failing to disclose a relationship with a direct report, and the early departure of chairman Paul Bulcke. Analysts said the headcount reduction was a “significant surprise,” with Bernstein noting the results “add fuel to the turnaround fire.” Navratil set out his priorities plainly: “Driving RIG‑led growth is our number one priority. We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.”

Strategic reviews of waters and premium beverages, and low‑growth, low‑margin vitamins and supplements brands, continue. The company maintained guidance that organic sales growth should improve in 2025 compared to 2024, and forecast underlying trading operating profit margin at, or above, 16 per cent. Navratil signalled a tighter portfolio focus and greater appetite for scale investments. “We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation,” he said.

Nestlé shares rose after the update, as investors weighed the sharper savings plan against operational progress and ongoing restructuring.

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