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Global consumer goods leader Nestlé has declared it will eliminate sixteen thousand jobs over the next two years, as its new CEO the company's fresh leader advances a plan to concentrate on products offering the “most lucrative outcomes”.

The Swiss company must “evolve at a quicker pace” to remain competitive in a changing world and implement a “performance mindset” that does not accept declining competitive position, said Mr Navratil.

He took over from former CEO the previous leader, who was terminated in September.

The layoff announcement were revealed on the fourth weekday as Nestlé announced stronger sales figures for the first three-quarters of 2025, with higher sales across its major categories, such as beverages and confectionery.

Globally dominant packaged food and drink firm, this industry leader operates hundreds of labels, like Nescafé, KitKat and Maggi.

The company intends to remove 12,000 professional positions in addition to 4,000 further jobs company-wide within the next two years, it announced publicly.

The lay-offs will cut costs by the consumer goods leader about CHF 1 billion annually as part of an sustained expense reduction program, it said.

Its equity price increased 7.5% shortly after its performance report and job cuts were made public.

Nestlé's leader commented: “We are building a corporate environment that embraces a performance mindset, that does not accept losing market share, and where success is recognized... The world is changing, and Nestlé needs to change faster.”

The restructuring would encompass “hard but necessary choices to reduce headcount,” he noted.

Equity analyst Diana Radu stated the report indicated that Mr Navratil wants to “enhance clarity to areas that were formerly less clear in the company's efficiency strategy.”

The workforce reductions, she explained, seem to be an effort to “reset expectations and regain market faith through concrete measures.”

Mr Navratil's predecessor was sacked by the company in the start of last fall after an investigation into whistleblower allegations that he did not disclose a personal involvement with a immediate staff member.

Its departing chairman Paul Bulcke brought forward his exit timeline and stepped down in the same month.

Sources indicated at the period that stakeholders held accountable the outgoing leader for the firm's continuing challenges.

Last year, an study revealed infant nutrition items from the company available in developing nations had unhealthily high levels of added sugars.

The study, conducted by non-profit organizations, established that in many cases, the equivalent goods sold in wealthy countries had no added sugar.

• Nestlé operates hundreds of labels globally.
• Job cuts will impact sixteen thousand employees throughout the next two years.
• Cost reductions are anticipated to reach 1bn SFr per year.
• Share price increased significantly following the announcement.