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Global consumer goods leader Nestlé has declared it will remove sixteen thousand positions over the next two years, as its new CEO Philipp Navratil drives a strategy to focus on products offering the “highest potential returns”.

The Swiss company has to “adapt more quickly” to keep pace with a dynamic global environment and adopt a “performance mindset” that rejects declining competitive position, said Mr Navratil.

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

These workforce reductions were made public on Thursday as Nestlé reported stronger sales figures for the first three-quarters of 2025, with increased revenue across its primary segments, encompassing beverages and confectionery.

The world's largest packaged food and drink company, Nestlé operates hundreds of product lines, like its coffee, chocolate, and food brands.

Nestlé intends to remove 12,000 professional roles on top of 4,000 further jobs across the board over the coming 24 months, it announced publicly.

The lay-offs will cut costs by the food giant around 1bn SFr (£940m) per annum as within an continuous efficiency drive, it stated.

The company's stock value increased by more than seven percent shortly after its performance report and job cuts were revealed.

Mr Navratil commented: “We are building a organizational ethos that welcomes a performance mindset, that will not abide market share declines, and where success is recognized... The marketplace is evolving, and Nestlé needs to change faster.”

This transformation would encompass “difficult yet essential choices to trim the workforce,” he added.

Financial expert Diana Radu said the update signalled that Nestlé's leader seeks to “increase openness to aspects that were once ambiguous in its expense reduction initiatives.”

These layoffs, she explained, are likely an effort to “reset expectations and rebuild investor confidence through concrete measures.”

His forerunner was terminated by Nestlé in the beginning of the ninth month after an investigation into reports from staff that he did not disclose a private liaison with a direct subordinate.

Its departing chairman the ex-chairman brought forward his leaving schedule and left his post in the same month.

Media stated at the time that shareholders attributed responsibility to the former chairman for the company's ongoing problems.

In the prior year, an investigation revealed Nestlé baby food products marketed in low- and middle-income countries included undesirably high quantities of added sugars.

The research, conducted by non-profit organizations, established that in many cases, the same products marketed in affluent markets had zero additional sweeteners.

• The corporation manages numerous product lines worldwide.
• Job cuts will affect sixteen thousand staff members over the coming 24 months.
• Savings are estimated to total CHF 1 billion per year.
• Share price climbed significantly after the announcement.