Nestle Unveils Sweeping Cost-Cutting Plan, Eliminating 16,000 Jobs Over Two Years

Nestle to Axe 16,000 Jobs as New Boss Pushes to Cut Costs Food and beverage giant Nestle is set to slash 16,000 jobs over the next two years, a move that will save the company around 1 billion Swiss francs (940 million euros) annually. The job cuts are part of an ongoing cost-savings effort aimed at boosting profitability in a highly competitive market. The decision was announced by new CEO Philipp Navratil, who took the helm after the departure of Laurent Freixe in September. Navratil has emphasized the need for Nestle to "change faster" and adopt a "performance mindset" that prioritizes products with the highest potential returns. Nestle's job cuts will affect both white-collar and blue-collar workers, with 12,000 administrative roles set to be eliminated alongside 4,000 other positions. The company owns hundreds of brands, including Nescafe, KitKat, and Maggi, making it one of the largest food and drink producers in the world. The market implications are significant, as Nestle's decision to cut costs will likely have a ripple effect on suppliers, contractors, and local economies. Industry analysts predict that other major food and beverage companies may follow suit, citing increased competition and pressure to maintain profitability. "Nestle's move is a clear signal that the company is prioritizing cost-cutting over organic growth," said Emma Taylor, an analyst at Euromonitor International. "This will likely lead to a wave of consolidation in the industry as other players seek to reduce their costs and improve efficiency." Stakeholders are also weighing in on the decision. Employee unions have expressed concern about job security and the impact on workers' livelihoods. "We understand that companies need to adapt to changing market conditions, but we expect Nestle to provide support for affected employees," said a spokesperson for the Swiss Trade Union Federation. Investors, however, seem to be welcoming the move as a necessary step towards boosting profitability. Shares in Nestle rose 2% on Thursday following the announcement, with analysts praising the company's commitment to cost-cutting and efficiency improvements. Looking ahead, Navratil has emphasized that Nestle will continue to focus on innovation and product development, particularly in areas such as plant-based foods and beverages. The company aims to maintain its position as a leader in the global food and drink market while adapting to changing consumer preferences and trends. As the job cuts take effect over the next two years, industry observers will be closely watching Nestle's progress towards achieving its cost-saving goals. Will the move pay off, or will it come at a long-term cost to the company's reputation and competitiveness? Only time will tell. Key Statistics: 16,000 jobs to be cut over the next two years 1 billion Swiss francs (940 million euros) in annual savings expected 12,000 white-collar jobs to be eliminated alongside 4,000 other positions Shares in Nestle rose 2% on Thursday following the announcement *Financial data compiled from Bbc reporting.*