Nestlé layoffs 2025: 16,000 jobs to be cut, including 12,000 white-collar roles — Here're the departments impacted

Nestle layoffs 2025: Food and beverage giant Nestlé has announced plans to cut 16,000 jobs worldwide over the next two years as part of a sweeping restructuring effort aimed at improving efficiency and profitability, as per a report.

The departments impacted by Nestle layoffs

The layoffs will affect 12,000 white-collar employees in management and office-based roles, along with another 4,000 positions across manufacturing, logistics, and supply chain departments, as reported by Euronews.

Why Nestlé is announcing major job cuts

The move comes as the company faces pressure to reignite growth and adapt to shifting global market conditions, as per the report. New CEO Philipp Navratil, who took over in September, described the job cuts as “hard but necessary,” saying Nestlé must “change faster” to remain competitive, as per the Euronews report.

The restructuring plan centers on redirecting investment toward high-performing brands and categories such as coffee, confectionery, and premium goods, as per the report. The company is also reviewing its water and premium beverage divisions, as well as its vitamins and supplements business, to determine their strategic fit, as per the Euronews report.

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Nestlé’s financial struggles and market performance

Nestlé’s performance has struggled in recent years. Its share price has fallen about 35% since 2022, and sales growth slowed to 2.2% in 2024, the weakest in years, as per the Euronews report. Growth edged up slightly to 3.3% in the first nine months of 2025. Reported net sales dropped 1.9% year-on-year to CHF 65.9 billion (€70.96 billion), with exchange rates weighing on results, as per the report.

Rising costs and trade barriers impact Nestlé’s global operations

Rising costs and trade barriers have added further strain, including the United States’ recent 39% import tariff on Swiss goods. To help offset these challenges, Nestlé expects the layoffs to save roughly 1 billion Swiss francs annually, contributing to a total cost-saving goal of 3 billion francs by 2027, as per the Euronews report.

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Nestlé leadership shake-up

The announcement comes amid leadership turmoil. Former CEO Laurent Freixe was dismissed in September for violating the company’s code of conduct, and long-time chairman Paul Bulcke stepped down earlier than planned, as per the report. Former Inditex CEO Pablo Isla has since been appointed chairman, while Navratil’s arrival marks a renewed focus on agility and accountability, as per the Euronews report.

Nestlé Q3 results beat analyst expectations

Despite the management shake-up, Nestlé reported stronger-than-expected results for the first nine months of 2025, supported by higher prices in core products like Nescafé coffee, KitKat chocolate, and Maggi cooking products, as reported by Euronews. In the third quarter, the company posted 1.5% real internal growth, surpassing analyst expectations of 0.3%, as per the report.

Nestlé stock jumps 8% after restructuring announcement

Investors responded positively to the restructuring announcement, with Nestlé’s stock climbing more than 8% on Thursday, according to the Euronews report.

Analyst outlook: Nestlé’s turnaround is a ‘work in progress’

Analyst Chris Beckett of Quilter Cheviot said the company is showing early signs of recovery. He said, “Management have grand ambitions to bring Nestle back to where it has historically been, but for now the company is a work in progress,” as quoted in the report.

Beckett highlighted that, “Full year guidance has been reaffirmed so we should see ongoing sales growth improvement with an operating margin of 16% or better. The shares trade at a discount to the wider sector and this reflects the turnaround story the business is on. A few more quarters like this one may just help complete that story and put the company back on a trajectory of high quality growth," as quoted by Euronews.

FAQs

Why is Nestlé cutting 16,000 jobs?

Nestlé is restructuring to improve efficiency, focus on high-performing brands, and adapt to slowing global growth, as per the Euronews report.

How much does Nestlé expect to save from these layoffs?

The company aims to save around 1 billion Swiss francs annually, contributing to total cost savings of 3 billion francs by 2027, as per the Euronews report.