Nestle cuts 16,000 jobs amid new CEO's turnaround

Published: Thursday, October 16, 2025 at 3:18 pm

Nestle Announces Significant Job Cuts Amidst New CEO's Turnaround Strategy

Nestle, the world's largest food and beverage company, is undergoing a significant restructuring under its new leadership, resulting in the planned elimination of 16,000 jobs. The announcement comes just weeks after Philipp Navratil assumed the role of CEO.

The job cuts include 12,000 white-collar and corporate positions, with an additional 4,000 roles slated to be eliminated over the next two years. The company aims to streamline its operations as part of its turnaround strategy.

The news initially boosted investor confidence, with Nestle's stock trading up 9% on the New York Stock Exchange at one point. Navratil, in a LinkedIn post, emphasized the company's transformation efforts, stating they are "evolving and will simplify our organization and automate our processes."

Navratil's appointment followed the termination of former CEO Laurent Freixe. Navratil is now tasked with revitalizing the food giant. The company has been under pressure from investors after its stock value declined nearly 10% over the past year.

While the company has not provided specific details on how it plans to integrate artificial intelligence or other automation technologies, the move aligns with a broader trend of job cuts in the corporate world, with over 17,000 job cuts tied specifically to AI.

Analysts have responded positively to the announcement, with Jon Cox of Kepler Chevreux describing the move as "extremely positive" and suggesting Nestle has "turned the corner." Navratil has indicated the company will prioritize resource allocation towards opportunities and businesses with the highest potential returns.

BNN's Perspective:

The scale of Nestle's job cuts is undoubtedly significant. While the market's initial positive reaction suggests confidence in the new leadership's strategy, the long-term impact on employees and the company's overall performance remains to be seen. The integration of AI and automation, while potentially boosting efficiency, also raises concerns about the future of the workforce. It will be crucial for Nestle to navigate this transition carefully, balancing the need for profitability with the responsibility to its employees and the broader economic landscape.

Keywords: Nestle, job cuts, CEO, turnaround, restructuring, automation, artificial intelligence, stock market, investors, Philipp Navratil, Laurent Freixe, food and beverage, corporate jobs, white-collar jobs, streamlining operations

Full Story