Nestlé to cut 16,000 jobs as new boss swings axe

Struggling food giant Nestlé is to slash 16,000 jobs over the next two years as its new boss ramps up cost-cutting efforts.

The Swiss conglomerate, which owns brands including KitKat and San Pellegrino, said the cuts will include 12,000 white-collar roles, driving savings of 1bn Swiss francs (£940m).

A further 4,000 jobs will be cut as part of an ongoing overhaul in the group’s manufacturing facilities and supply chain.

The cuts, which represent around 6pc of Nestle’s global workforce, mark the first shake-up by Philipp Navratil, who took over as chief executive last month after his predecessor Laurent Freixe was sacked for having an affair with a junior colleague.

The 63-year-old, who has not publicly commented on his departure, had been at the company for almost four decades but had been chief executive for just a year when the scandal emerged. His exit was followed just two weeks later by the surprise resignation of chairman Paul Bulcke.

Mr Navratil warned “the world is changing, and Nestlé needs to change faster” as he announced the company would ramp up its cost savings target to 3bn Swiss francs by the end of 2027, up from 2.5bn previously.

He added: “This will include making hard but necessary decisions to reduce headcount over the next two years.”Philipp Navratil wants Nestlé to save £2.8bn by the end of 2027 - William Gammuto

The job cuts come as Nestlé battles a slowdown in sales as the cost-of-living crisis prompts shoppers to either trim their household budgets or trade down to cheaper supermarket own-label ranges.

Mr Navratil, who has worked at the Swiss company since 2001 and most recently ran its Nespresso brand, has set out plans to restore growth through cost-cutting and investment in its most profitable areas.

On Thursday, Nestlé reported a 1.9pc decline in sales o 65.9bn Swiss francs for the first nine months of the year.

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