Nestle, the Swiss multinational known for brands like Nespresso and Perrier, announced on Thursday (October 16) that it would layoff 16,000 jobs globally over the next two years, a move that significantly boosted its share price. Philipp Navratil, who assumed the CEO role in September, said that the company needs to adapt more swiftly to a changing global market. He described the job reductions as tough but essential for the company’s future.&nbsp;Shares of the company surged by over 8% in early trading, which also helped push Zurich’s stock market to the top of Europe’s performance charts. Nestle's announcement came with the release of its financial results for the first nine months of the year, revealing a slight 1.9% drop in sales, totaling 65.9 billion Swiss francs ($83 billion). The planned layoffs will affect about 6% of Nestle’s workforce, with 12,000 office-based positions being cut to help the company save one billion Swiss francs, a target now set to double from prior estimates. Additionally, 4,000 production and supply chain jobs are already being phased out.&nbsp;Also Read: <a href="https://www.wionews.com/trending/-played-30-sec-ads-but-no-video-netizens-share-hilarious-memes-as-youtube-faces-global-outage-1760606177127">'Played 30-sec ads but no video': Netizens share hilarious memes as YouTube faces global outage</a><h2>Why is Nestle laying off its employees?</h2>Navratil also disclosed that Nestle aims to raise its cost-saving target to three billion Swiss francs by 2027, up from the previous 2.5 billion. Jean-Philippe Bertshy, an analyst at Vontobel investment firm, noted that Navratil’s early actions indicate a proactive approach, and the initial steps appear promising. The company, which owns more than 2,000 products including KitKat, Maggi, and Purina, faced a rocky September. This included the abrupt departure of its former CEO over an office scandal, as well as the early resignation of its chairman. A bottled water controversy in France in 2024 added to the turbulence.<h3>Financial outlook</h3>Analysts are hopeful that Navratil’s leadership will bring much-needed stability to the company, which has faced sluggish growth since 2022. The slight dip in total sales was partly driven by currency fluctuations, but the company reported a 3.3% growth in organic sales for the first nine months of 2025, largely driven by price hikes.&nbsp;Navratil said, “Results are showing improvement, but we must accelerate our growth efforts moving forward.” Coffee and confectionery were the primary drivers of the company's organic sales growth, with some markets seeing double-digit price increases. Patrik Schwendimann, an analyst at Zurich Cantonal Bank, said that Nestle’s volume growth in the third quarter far exceeded analysts’ expectations, with volumes rising 1.5% from July to September, compared to a forecasted 0.3% increase.

Nestle plans to cut 16,000 jobs globally, part of a broader restructuring under new CEO Philipp Navratil to boost growth, reduce costs, and improve efficiency

Nestle, the Swiss multinational known for brands like Nespresso and Perrier, announced on Thursday (October 16) that it would layoff 16,000 jobs globally over the next two years, a move that significantly boosted its share price. Philipp Navratil, who assumed the CEO role in September, said that the company needs to adapt more swiftly to a changing global market. He described the job reductions as tough but essential for the company’s future. Shares of the company surged by over 8% in early trading, which also helped push Zurich’s stock market to the top of Europe’s performance charts. Nestle's announcement came with the release of its financial results for the first nine months of the year, revealing a slight 1.9% drop in sales, totaling 65.9 billion Swiss francs ($83 billion). The planned layoffs will affect about 6% of Nestle’s workforce, with 12,000 office-based positions being cut to help the company save one billion Swiss francs, a target now set to double from prior estimates. Additionally, 4,000 production and supply chain jobs are already being phased out. Also Read: 'Played 30-sec ads but no video': Netizens share hilarious memes as YouTube faces global outage Why is Nestle laying off its employees? Navratil also disclosed that Nestle aims to raise its cost-saving target to three billion Swiss francs by 2027, up from the previous 2.5 billion. Jean-Philippe Bertshy, an analyst at Vontobel investment firm, noted that Navratil’s early actions indicate a proactive approach, and the initial steps appear promising. The company, which owns more than 2,000 products including KitKat, Maggi, and Purina, faced a rocky September. This included the abrupt departure of its former CEO over an office scandal, as well as the early resignation of its chairman. A bottled water controversy in France in 2024 added to the turbulence. Financial outlook Analysts are hopeful that Navratil’s leadership will bring much-needed stability to the company, which has faced sluggish growth since 2022. The slight dip in total sales was partly driven by currency fluctuations, but the company reported a 3.3% growth in organic sales for the first nine months of 2025, largely driven by price hikes. Navratil said, “Results are showing improvement, but we must accelerate our growth efforts moving forward.” Coffee and confectionery were the primary drivers of the company's organic sales growth, with some markets seeing double-digit price increases. Patrik Schwendimann, an analyst at Zurich Cantonal Bank, said that Nestle’s volume growth in the third quarter far exceeded analysts’ expectations, with volumes rising 1.5% from July to September, compared to a forecasted 0.3% increase.

Nestle plans to cut 16,000 jobs globally, part of a broader restructuring under new CEO Philipp Navratil to boost growth, reduce costs, and improve efficiency

Nestle layoffs 2025: FMCG firm to cut 16,000 jobs over next two years as new CEO pushes for restructuring; company's share price soars

Corporate culture is under the microscope. A wave of executive scandals — including the CEO of Astronomer caught in controversy at a Coldplay concert — has reignited debate over workplace ethics. Now, Nestlé has joined the list, abruptly dismissing CEO Laurent Freixe after just one year in office. What’s behind this trend of high-profile exits, and how are companies redefining accountability at the top?

 Nestle CEO dismissal adds to list of CEOs ousted over relationships

From the very recent case of Astronomer's CEO Andy Byron being fired to the latest case of Nestle dismissing CEO Laurent Frexie, other high-profile exits have been over workplace romance. 

From the very recent case of Astronomer's CEO Andy Byron being fired to the latest case of Nestle dismissing CEO Laurent Frexie, other high-profile exits have been over workplace romance.

Nestlé's Laurent Freixe to Astronomer's Andy Byron: Global CEOs fired over office romance

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Nestle layoffs 2025: FMCG firm to cut 16,000 jobs over next two years as new CEO pushes for restructuring; company's share price soars

Nestle CEO dismissal adds to list of CEOs ousted over relationships

Nestlé's Laurent to Astronomer's Andy: Global CEOs fired over office romance