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Food and beverage giant the Swiss conglomerate stated it will cut 16,000 roles within the coming 24 months, as the recently appointed chief executive Philipp Navratil pushes a strategy to focus on products offering the “most lucrative outcomes”.

The Swiss company needs to “evolve at a quicker pace” to keep pace with a dynamic global environment and adopt a “achievement-focused approach” that does not accept losing market share, according to the CEO.

His appointment followed ex-chief executive Laurent Freixe, who was terminated in last fall.

The layoff announcement were disclosed on Thursday as the corporation announced improved sales figures for the initial three quarters of 2025, with higher product movement across its key product lines, such as hot drinks and snacks.

Globally dominant food & beverage company, Nestlé owns hundreds of brands, among them Nescafé, KitKat and Maggi.

The company aims to remove 12,000 administrative roles alongside four thousand other roles across the board over the coming 24 months, it said in a statement.

The lay-offs will save the corporation around CHF 1 billion annually as part of an continuous efficiency drive, it confirmed.

Its equity price rose seven and a half percent soon after its quarterly update and restructuring news were announced.

Mr Navratil commented: “We are cultivating a organizational ethos that adopts a achievement-oriented approach, that will not abide losing market share, and where achievement is incentivized... Global dynamics are shifting, and Nestlé needs to change faster.”

Such change would include “tough but required decisions to reduce headcount,” he noted.

Market analyst an industry specialist said the announcement suggested that Mr Navratil seeks to “bring greater transparency to areas that were once ambiguous in its expense reduction initiatives.”

The workforce reductions, she said, are likely an initiative to “recalibrate projections and restore shareholder trust through measurable actions.”

The former CEO was terminated by Nestlé in the start of last fall after an investigation into internal complaints that he failed to report a private liaison with a junior employee.

Its departing chairman the ex-chairman moved up his departure date and stepped down in the corresponding timeframe.

Media stated at the time that shareholders held accountable Mr Bulcke for the company's ongoing problems.

In the prior year, an inquiry found Nestlé baby food products marketed in low- and middle-income countries included undesirably high quantities of added sugars.

The analysis, conducted by non-profit organizations, found that in several situations, the same products sold in wealthy countries had zero additional sweeteners.

• Nestlé manages a wide array of brands worldwide.
• Workforce reductions will impact 16,000 workers during the upcoming biennium.
• Cost reductions are estimated to reach 1bn SFr each year.
• Stock value rose significantly post the announcement.