In a statement released Thursday, Nestlé announced it will reduce global headcount by 16,000 over the next two years to drive cost savings and productivity. This represents nearly 6% of Nestlé's total workforce.
“The world is changing, and Nestlé needs to change faster,” said newly appointed Nestlé CEO Philipp Navratil in a statement. “This will include making hard but necessary decisions to reduce headcount over the next two years.”
The headcount reduction includes 12,000 white-collar professionals, which the company expects will produce annual savings of 1.0 billion Swiss francs by the end of 2027. This is double its original annual savings goal of 0.5 billion.
4,000 additional layoffs will be in manufacturing and supply chain roles.
The company’s Fuel for Growth cost savings program has increased its total cost savings target from 2.5 billion Swiss francs to 3.0 billion by the end of 2027.
“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns,” said Navratil. “We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation.”
