Nestlé will lay off 16,000 employees in its transformation process.

Big Change at Nestlé: 16 Thousand Workers to Be Laid Off

Nestlé SA's new CEO Philipp Navratil has made an important decision to accelerate the transformation process of the food giant. The company announced plans to lay off 16 thousand employees, which represents about %6 of its total workforce.

Layoff Process and Timeline

In a statement made on Thursday, it was reported that these layoffs would take place within the next two years. Navratil emphasized the need for Nestlé to adapt more quickly to global changes. The CEO stated, “This process requires taking difficult but inevitable steps, such as reducing the workforce.”

Cost-Saving Targets Increased

The company also updated its cost-saving targets. The amount targeted for savings by 2027 has been increased from 2.5 billion Swiss francs to 3 billion francs (approximately 3.7 billion dollars). This announcement came on the eve of Nestlé's disclosure of its Q3 sales figures.

New CEO and Management Changes

Philipp Navratil, who was appointed last year in place of Laurent Freixe, has served the company for over 20 years while managing the Nespresso unit. This change was further weakened by the premature resignation of Chairman of the Board Paul Bulcke. He was replaced by former Inditex SA CEO Pablo Isla.