Nestle to axe 16,000 jobs as new chief targets sales growth

"Nestle has said it will cut 16,000 jobs over the next two years as the owner of KitKat and Nescafe attempts to reduce costs and boost sales. The Swiss-headquartered multinational said the cuts would include 12,000 white-collar professionals and 4,000 in its manufacturing and supply chain, close to 6% of Nestle's global workforce. The world is changing and Nestle needs to change faster, said Philipp Navratil, the new chief executive."

"Navratil, who replaced Laurent Freixe last month after he was fired for failing to disclose a romantic relationship with a subordinate, announced an acceleration of his predecessor's cost-saving plan to free up cash. The company, which owns a suite of consumer goods brands including Haagen-Dazs ice-cream, Nespresso coffee capsules and Purina cat food, will seek to make savings of SFr3bn (2.8bn) by 2027, up from a previous target of SFr2.5bn."

Nestle will reduce headcount by 16,000 over the next two years, comprising 12,000 white-collar positions and 4,000 roles in manufacturing and supply chain, about 6% of its global workforce. Philipp Navratil became chief executive and accelerated a cost-saving plan to free up cash and target SFr3bn in savings by 2027, up from SFr2.5bn. Leadership upheaval followed the firing of Laurent Freixe and the chair's resignation, contributing to destabilisation. Reported sales fell 1.9% year-on-year to SFr65.9bn in the first nine months due mainly to a 5.4% negative foreign exchange impact, while organic sales rose 3.3%.

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