Nestlé announced plans to reduce its global workforce by around 16,000 roles over the next two years as part of its expanded “Fuel for Growth” efficiency programme.
The company revealed the restructuring aims to deliver CHF3.0 billion ($3.77 billion) in total cost savings by the end of 2027.
“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency,” Philipp Navratil, Nestlé CEO said in a statement.
Nestlé confirms global workforce reduction plan through 2027
About 12,000 of the job reductions will affect white-collar professionals across functions and geographies.
These changes are expected to generate annual savings of CHF1.0 billion by 2027, double the original plan of CHF0.5 billion. The company said related one-off restructuring costs will be about twice the annual savings.
An additional 4,000 jobs will be cut as part of ongoing productivity initiatives in manufacturing and supply chain operations.
The “Fuel for Growth” programme focuses on operational efficiency, process automation, and shared services. Nestlé said these measures will support its aim to accelerate growth and value creation while maintaining investment in innovation and core brands.
“Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum,” Navratil said.
Nestlé’s total reported sales for the first nine months of 2025 were CHF 65.9 billion, down 1.9 per cent from the same period in 2024. Organic growth reached 3.3 per cent, supported by 0.6 per cent real internal growth (RIG) and 2.8 per cent pricing. The company cited a 5.4 per cent negative foreign exchange impact and a 0.1 per cent positive effect from acquisitions.
The company expects free cash flow above CHF 8 billion in 2025 and an underlying trading operating profit margin at or above 16 per cent.
“The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value,” he said.
