Nestle Announces 16,000 Job Cuts as Part of Turnaround Plan

Consumer goods giant Nestle unveiled sweeping restructuring plans Thursday, announcing the elimination of 16,000 positions globally as new CEO Philipp Navratil accelerates efforts to revitalize the struggling company. The cuts represent approximately 5% of the company's total workforce and include 12,000 white-collar roles.

The announcement accompanies the company's third-quarter earnings report, signaling Navratil's determination to streamline operations after taking the helm earlier this year. "These changes are necessary to make Nestle faster, more agile, and more competitive," Navratil stated in a company release. "We must transform how we work to deliver sustainable growth."

Industry analysts view the job cuts as a critical step in addressing Nestle's recent underperformance, which has seen the company lag behind rivals in innovation and market growth. The restructuring particularly targets administrative functions and duplicated roles across the multinational organization's extensive global operations.

"While always difficult, workforce reductions are sometimes necessary to reallocate resources toward growth areas," noted Sarah Johnson, retail analyst at Global Market Insights. "The key will be how Nestle invests the savings back into product development and digital transformation."

The job cuts will be implemented gradually over the next two years, with the company offering severance packages and retraining programs where possible. Nestle emphasized that customer-facing roles and frontline employees would be largely unaffected by the reductions.

As the company navigates this transition, all eyes remain on Navratil's ability to execute the turnaround while maintaining employee morale and brand reputation during what promises to be a challenging restructuring period. The company's next earnings report will provide further insight into the financial impact of these changes.

Read the original article at CNBC