Nestlé will reduce about 16,000 jobs worldwide over the next two years as part of a major restructuring aimed at cutting costs and accelerating growth.
The company said the headcount reduction will include around 12,000 white-collar roles across functions and regions, as well as 4,000 positions in manufacturing and supply chain. The cuts are expected to generate annual savings of CHF 1 billion (AUD $1.9 billion) by the end of 2027.
Philipp Navratil, CEO of Nestlé, said they will make the cuts with respect and transparency.
“Along with other measures, we are working to substantially reduce our costs, and today we are increasing our savings target to CHF 3.0 billion (AUD $5.8 billion) by the end of 2027.”
Nestlé reported sales of CHF 65.9 billion (AUD $127 billion) for the first nine months of 2025, down 1.9 per cent compared with the same period last year, mainly due to currency impacts. Organic growth rose 3.3 per cent, supported by stronger performance in coffee, confectionery and out-of-home channels.
“The world is changing, and Nestlé needs to change faster. As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns,” said Navratil.
The Swiss food and beverage company said its “Fuel for Growth” cost savings target has been raised from CHF 2.5 billion (AUD $4.8 billion) to CHF 3 billion (AUD $5.8 billion).
Nestlé maintained its guidance for 2025, forecasting organic sales growth above 2024 levels and an underlying trading operating profit margin of at least 16 per cent.
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