Nestle’s new CEO, Philipp Navratil, announced on Thursday that around 16,000 employees will lose their jobs, 6 per cent of the total workforce, in the next two years. The announcement came during Nestle’s Q2 results, where the world’s largest packaged food company reported stronger-than-expected sales growth, driven by higher prices for its coffee and confectionery products, Reuters said in a report.
Nestle layoffs 2025: 16k people to loose jobs
Nestle said it will reduce its global workforce by 16,000, including 12,000 white-collar roles and 4,000 positions in manufacturing and supply chain, under its ongoing efficiency and growth initiatives. The company currently employs about 2.7 lakh people across the world.
“The world is changing and Nestlé needs to change faster,” he said, before announcing, “This will include making hard but necessary decisions to reduce headcount over the next two years.”
Navratil, the former head of Nespresso, replaced former CEO Laurent Freixe, who was fired over an undisclosed relationship with a direct report.
Nestle India Q2 results: Net profit at Rs 753.2 cr
Nestle India reported a 23.6 per cent drop in net profit at Rs 753.2 crore for the second quarter of FY26, compared to Rs 986.36 crore in the same period last year. The company’s profit before exceptional items and tax stood at Rs 1,028.52 crore.
The company’s Chairman and Managing Director, Manish Tiwary, said the company’s growth was largely driven by volumes. “Three out of four product groups delivered strong, volume-led, double-digit growth. Our domestic sales reached Rs 5,411 crore, the highest ever recorded in any quarter. I would like to thank our employees for their commitment and resolve,” he said.
A 1.5% increase in real internal growth (RIG), which tracks sales volumes, surpassed analysts’ expectations of just 0.3 per cent, giving Navratil some breathing room as he works to establish his leadership after his sudden promotion, Reuters reported.
The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reignite stalling sales growth and arrest a steep share price slide as costs have risen and debt levels have climbed amid rising investor pressure.
Navratil said driving RIG-led growth was Nestle’s top priority and that it would raise its cost savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027.
“We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” Navratil said in a statement.