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Food and beverage giant Nestlé announced it will cut 16,000 jobs within the coming 24 months, as its new CEO Philipp Navratil drives a plan to prioritize products offering the “greatest profit margins”.

The Swiss company must “change faster” to stay aligned with a changing world and implement a “results-oriented culture” that rejects ceding ground to competitors, said Mr Navratil.

He replaced ex-chief executive the previous leader, who was let go in the ninth month.

These workforce reductions were disclosed on Thursday as Nestlé announced stronger performance metrics for the first three-quarters of 2025, with increased revenue across its key product lines, including beverages and confectionery.

The biggest food & beverage firm, this industry leader owns hundreds of brands, including well-known names in coffee and snacks.

The company intends to get rid of 12,000 white collar jobs in addition to 4,000 additional positions company-wide over the coming 24 months, it announced publicly.

These job cuts will result in savings of the corporation about 1bn SFr (£940m) annually as within an sustained expense reduction program, it stated.

The company's stock value rose by more than seven percent soon after its trading update and restructuring news were revealed.

The CEO said: “We are cultivating a culture that adopts a achievement-oriented approach, that refuses to tolerate losing market share, and where achievement is incentivized... Global dynamics are shifting, and the company requires accelerated transformation.”

Such change would include “tough but required choices to reduce headcount,” he added.

Equity analyst an industry specialist stated the update suggested that Mr Navratil seeks to “enhance clarity to sectors that were previously more opaque in the company's efficiency strategy.”

The workforce reductions, she explained, are likely an effort to “reset expectations and regain market faith through tangible steps.”

His forerunner was dismissed by Nestlé in the start of last fall after an investigation into reports from staff that he did not disclose a private liaison with a direct subordinate.

Its departing chairman the ex-chairman accelerated his leaving schedule and resigned in the identical period.

It was reported at the moment that shareholders held accountable Mr Bulcke for the corporation's persistent issues.

The previous year, an investigation found its baby formula and foods marketed in low- and middle-income countries included unhealthily high levels of sugar.

The study, by a Swiss NGO and the International Baby Food Action Network, established that in numerous instances, the identical items sold in affluent markets had zero additional sweeteners.

• The corporation operates a wide array of labels internationally.
• Workforce reductions will affect sixteen thousand staff members throughout the upcoming biennium.
• Expense cuts are projected to amount to one billion Swiss francs each year.
• Share price rose seven and a half percent following the update.