Nestlé Cuts 16,000 Jobs Under New CEO, Citing Automation as Key Factor
Nestlé has announced a substantial workforce reduction as part of a strategic shift under its new CEO, Philipp Navratil. The company will eliminate a total of 16,000 positions globally, amounting to a 6% decrease in its workforce over the next two years. This move comes as part of Nestlé’s effort to enhance operational efficiency and cut costs amidst challenging market conditions.
Nestlé’s Workforce Reduction Plan
The job cuts include:
- 12,000 white-collar positions
- 4,000 roles within manufacturing and supply chain
These changes aim to streamline the organization and incorporate more automation into their processes. Navratil emphasized this shift in a recent LinkedIn post, stating, “We are transforming how we work.”
Sales Performance and Market Challenges
Despite a challenging market, Nestlé reported that its organic sales rose by 3.3% for the first nine months of 2025, even though total sales decreased by 1.9% to approximately $82.8 billion. This indicates some resilience in performance, as it excludes currency fluctuations and acquisitions.
Strategic Goals and Future Outlook
The company aims to address evolving consumer preferences, particularly the shift away from processed foods. By implementing digitalization and automation, Nestlé plans to adapt to these changes more effectively. Navratil highlighted the necessity for swift adaptations, stating, “The world is changing, and Nestlé needs to change faster.”
This substantial layoff initiative is characterized by its global scope, with each market developing its own approach to manage the changes. Specific details regarding the impact on individual markets have not yet been disclosed.
Background on Leadership Changes
The decision to overhaul the workforce follows the recent appointment of Philipp Navratil as CEO. He succeeded Laurent Frexie, who was dismissed after a brief tenure due to personal conduct issues. Navratil is now charged with steering Nestlé through a period that demands agile responses to market dynamics.
As Nestlé undertakes this transformative journey, industry observers will be watching closely to see how these changes affect the company’s long-term strategy and its well-known brands like KitKat and Nesquik.
