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Food and beverage giant Nestlé stated it will cut 16,000 roles over the next two years, as the recently appointed chief executive the company's fresh leader drives a initiative to concentrate on products offering the “greatest profit margins”.

This multinational corporation has to “evolve at a quicker pace” to keep pace with a changing world and embrace a “performance mindset” that rejects declining competitive position, the executive stated.

He replaced ex-chief executive the previous leader, who was terminated in September.

The layoff announcement were disclosed on Thursday as the corporation shared improved sales figures for the initial three quarters of 2025, with increased product movement across its major categories, such as hot drinks and snacks.

The world's largest consumer packaged goods company, Nestlé manages numerous product lines, like its coffee, chocolate, and food brands.

The company plans to get rid of twelve thousand administrative roles in addition to four thousand further jobs throughout the organization during the next biennium, it announced publicly.

The workforce reduction will save the food giant around 1bn SFr (£940m) each year as part of an ongoing cost-savings effort, it confirmed.

The company's stock value rose seven and a half percent shortly after its quarterly update and layoff announcement were made public.

The CEO commented: “We are building a corporate environment that embraces a performance mindset, that will not abide losing market share, and where achievement is incentivized... Global dynamics are shifting, and the company requires accelerated transformation.”

Such change would involve “hard but necessary actions to cut staff numbers,” he added.

Financial expert Diana Radu said the announcement signalled that Mr Navratil seeks to “increase openness to areas that were formerly less clear in its expense reduction initiatives.”

The job cuts, she explained, are likely an attempt to “recalibrate projections and regain market faith through measurable actions.”

The former CEO was sacked by Nestlé in early September after an investigation into internal complaints that he omitted to reveal a personal involvement with a direct subordinate.

The former board leader the ex-chairman moved up his leaving schedule and left his post in the same month.

It was reported at the time that shareholders held accountable the former chairman for the company's ongoing problems.

In the prior year, an inquiry revealed its baby formula and foods available in low- and middle-income countries had excessive amounts of added sugars.

The analysis, by a Swiss NGO and the International Baby Food Action Network, found that in several situations, the same products sold in wealthy countries had no added sugar.

• Nestlé operates a wide array of labels globally.
• Workforce reductions will affect 16,000 workers over the coming 24 months.
• Expense cuts are anticipated to amount to 1bn SFr per year.
• Stock value rose significantly following the news.