Nestle, the world's largest packaged food company, will cut 16,000 jobs

"Nestle will cut 16,000 jobs, new CEO Philipp Navratil said on Thursday, as the world's largest packaged food company seeks to cut costs and win back investor confidence. The jobs being cut represent 5.8% of Nestle's around 277,000 employees. Navratil said Nestle had raised its cost savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027."

"UNPRECEDENTED MANAGEMENT TURMOIL Nestle, whose shares leapt by around 8% in early trading, has experienced an unprecedented period of managerial turmoil, with Navratil replacing Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report. Chairman Paul Bulcke then stepped down early to make way for former Inditex chief Pablo Isla two weeks later."

"'FUEL TO THE TURNAROUND FIRE' The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reverse stalling sales growth and arrest a share price slide as it battles U.S. import tariffs, while costs have risen and debt levels have climbed, increasing pressure from investors. Nestle's quarterly results "add fuel to the turnaround fire," Bernstein analysts wrote in a note, naming the headcount reduction as a "significant surprise"."

Philipp Navratil plans to cut 16,000 jobs, about 5.8% of roughly 277,000 employees, and raised the cost-savings target to 3 billion Swiss francs by the end of 2027. U.S. import tariffs and fragile consumer confidence are weighing on sales as consumers shift toward healthier habits. Management turnover has been significant, including the firing of the previous CEO and the early departure of the chairman. The cuts include 12,000 white-collar roles and 4,000 manufacturing and supply-chain positions aimed at improving efficiency. Stalling sales growth, rising costs and higher debt have pressured the share price.

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