Nestlé to cut thousands of jobs in next two years

Navratil's predecessors had already announced an initiative to save CHF2.5 billion. Keystone-SDA

The new CEO of the Swiss food giant Nestlé, Philipp Navratil, announced the company plans to cut 16,000 jobs globally over two years.

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The cuts will include 12,000 management positions, Nestlé said on Thursday. This measure alone should reduce the cost base by CHF1 billion ($1.26 billion) by the end of 2027, while its implementation is expected to cost twice that amount, according to the company’s nine-month results announced on Thursday.

The remaining 4,000 job cuts will be concentrated in production and supply chains. Management is ultimately aiming for annual savings of CHF3 billion.

However, these measures are part of the Fuel for Growth initiative launched by Navratil’s predecessors that already had a a target of CHF2.5 billion in savings, including CHF500 million for white-collar workers alone.

Presenting the results for the first nine months, the company spoke of declining sales: turnover was limited to CHF65.9 billion, compared to CHF67.15 billion last year.

Translated from Italian with DeepL/gw

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