New Nestlé boss plots strategic overhaul to reignite growth

Nestlé has traditionally organised itself by geographic regions. Keystone / Jean-Christophe Bott

Nestlé’s new chief executive is planning a strategic overhaul that will refocus the sprawling multinational around four product categories, as it faces pressure to boost growth after a period of turmoil.

Philipp Navratil, appointed after the firing of former boss Laurent Freixe, is preparing to organise the KitKat and Nespresso maker around new “pillars” — coffee; petcare; nutrition and health; and food and snacking — people familiar with the matter told the Financial Times. 

The move is the latest significant step by Navratil since taking over in September from Freixe, who was removed over an undisclosed romantic relationship with a direct report.

The new boss, who is under pressure to slim down the company and revive sales growth after a slump from post-Covid highs, has already launched a restructuring programme that will slash 16,000 jobs over the next 18 months.

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The four new product groupings, or “pillars”, could lay the groundwork for a formal reorganisation at the group, which has a market capitalisation of SFr196bn, the people said.

Navratil hopes the strategy will create more co-operation across Nestlé’s complex structure. This should help teams adapt more quickly to changing consumer trends with new product innovations, according to the people.

Nestlé is currently organised by region — Americas; Europe and Asia; Oceania and Africa — and into six categories, which are known at Nestlé as “strategic business units”.

The group also has three “globally managed businesses”, which are run independently of the three geographic zones: Nespresso, Health Science and Nestlé Waters, which is in the process of being divested.

“The focus will increasingly align with the four [product] pillars, but execution in [geographic] markets will remain essential,” one of the people briefed on the plans said.

Nestlé’s three geographic zone heads, who sit on the company’s executive board, have significantly more decision-making power than the heads of the SBUs. Just one executive board member is head of all the SBUs.

“Historically the group has been firmly rooted in a regional set-up,” said Vontobel analyst Jean-Philippe Bertschy. 

“Most of its portfolio is still perceived as local brands, with the vast majority of brands registered and positioned at country level rather than as global megabrands.”

Nestlé declined to comment.

Over the past two years, the multinational has been rocked by leadership turmoil, operational mishaps and most recently, a major infant formula recall.

Navratil has pressed ahead with his predecessor’s cost-saving programme as well as the planned divestments of Nestlé’s water and mainstream vitamins businesses.

Investors are keen to hear whether Navratil will consider further divestments to reduce the company’s debt, which was CHF60 billion as of June 2025, almost double its 2020 levels.

Consumer goods companies across Europe have come under pressure to sell off large parts of their businesses in order to reduce debt and boost margins. Suggestions investors have made to Nestlé include selling the confectionery business or US frozen food brands.

Copyright The Financial Times Limited 2026