Nestle SA, one of the world’s largest food and beverage companies, is set to undergo a major global restructuring that will impact around 16,000 jobs over the next two years. The company’s new CEO, Philipp Navratil, who took charge in early September, announced that the move is part of efforts to help Nestle adapt to a rapidly changing business environment. “The world is changing, and Nestle needs to change faster,” Navratil said, calling the layoffs a “hard but necessary decision” to streamline operations and drive future growth.

Sales Dip Despite Price Hike

Even as Nestle announced the job cuts, CEO Philipp Navratil revealed that the company’s sales for the first nine months of 2025 fell by 1.9 per cent to 83 billion dollars. However, Nestle managed an organic sales growth of 3.3 per cent, largely driven by a 2.8 per cent increase in product prices.

Massive Restructuring to Boost Savings

Nestle’s layoff plan includes cutting 12,000 white-collar jobs, a move expected to save the company 1 billion Swiss francs—double the amount previously planned. This comes in addition to 4,000 job cuts already taking place in production and supply chain divisions. CEO Philipp Navratil announced that Nestle has now raised its overall savings target to 3 billion Swiss francs by the end of 2027, up from the earlier goal of 2.5 billion. The shake-up follows a turbulent September for the company, marked by the dismissal of its former CEO over an office relationship and the unexpected early exit of its chairman.

Nestle India Reports Sharp Profit Drop

Nestle India posted a 23.6 per cent decline in net profit for the second quarter of FY26, falling to Rs 753.2 crore from Rs 986.36 crore in the same period last year. However, profit before exceptional items and tax stood at Rs 1,028.52 crore. Despite the dip, the company recorded a 1.5 per cent rise in real internal growth (RIG).