How is Nestlé's CEO Targeting Growth With Plan for Job Cuts?

Nestlé CEO, Philipp Navratil, says the company must keep pace with a changing world and focus on performance that doesn't accept losing market share to rivals.

Philipp, who took over as Nestlé CEO in September 2025, announced on 16 October that the company will see 16,000 job cuts over the next two years.

Nestlé says this includes 12,000 white-collared professionals and 4,000 other employees as part of “ongoing productivity initiatives in manufacturing and supply chain”.

According to the food and beverage manufacturer, the lay-offs will save around CHF1bn (US$1.25bn).

This comes at a time when the Swiss company reports better sales figures in the first nine months of 2025, selling more products across its major categories, including coffee and sweets.

On 16 October, the firm reported an increase of 3.3% in organic growth, supported by a 0.6 rise in real internal growth (RIG) and 2.8% pricing.

Growth accelerated in Q3 to 4.3%, driven by stronger volume recovery and pricing actions.

In a statement discussing its success, the CEO said: “Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through.

“Now we must do more and move faster to accelerate our growth momentum.”

He added that he is “fostering a culture that embraces a performance mindset” as “the world is changing, and Nestlé needs to change faster”.

A turbulent year of change at Nestlé 

Nestlé has undergone a year marked by leadership upheaval and organisational restructuring.

The most visible shift came with the dismissal of former CEO Laurent Freixe in September, following an investigation into “an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct”.

Paul Bulcke, the Chairman at the time, called it a “necessary decision”, affirming: “Nestlé’s values and governance are strong foundations of our company."

The Board quickly appointed Philipp as CEO - a move followed by further change at the top.

Paul announced he would step down earlier than planned and Pablo Isla took over as Chairman on 1 October.

These leadership transitions came after structural changes to Nestlé’s Executive Board in January, aimed at increasing agility.

Laurent said at the time: “A leaner Executive Board structure and close collaboration of the leadership team at the headquarters will increase simplicity, speed up decision making and strengthen the momentum behind global initiatives.”

Continued focus on strategy and performance 

Despite recent turbulence, the Swiss firm remains committed to its existing strategic direction.

Speaking shortly after his appointment, Philipp said: “I am honoured by the trust the Board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future.”

He signalled a forward-looking approach focused on initiative and speed, telling employees: “Together we are moving fast, open to fresh ideas on how we deliver the future of tasty, healthy, affordable food.”

Discussing recent growth, he said: “As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns.

“We will be bold in investing at scale and driving innovation to deliver accelerated growth and value creation.”

Philipp said the lay-offs will be done with “respect and transparency” as part of a wider goal of increasing the savings target to CHF3bn (US$3.75bn) by the end of 2027.