Switzerland – Nestlé’s new CEO, Philippe Navratil, announced today that the company will eliminate 16,000 jobs worldwide over the next two years as part of a program to reduce production capacity and increase efficiency.
This came during the announcement of the company’s business results during the first nine months of the year, as Nestlé’s business volume decreased by 1.9% to 65.9 billion Swiss francs (71 billion euros).
Global development
“The world is evolving, and Nestlé must adapt more quickly,” explained Navratil, who assumed his duties in early September. This requires “making difficult but necessary decisions to reduce production capacity.”
The workforce reduction program includes the elimination of 12,000 jobs across various departments and parts of the world, which will allow the company to save CHF 1 billion annually by the end of 2027.
This is double what was previously planned. In addition, 4,000 other jobs will be eliminated as part of ongoing initiatives aimed at improving efficiency in production and the supply chain.
Leadership disorders
This move comes amid leadership turmoil at Nestlé in September, which included the dismissal of former CEO Laurent Froux and the sudden departure of Chairman Paul Bulc.
Financial analysts hope Navratil can restore stability to the company, which was negatively impacted by slowing growth due to the 2022 inflation wave and the bottled water crisis that affected its reputation.
