Nestlé Reveals Massive 16,000 Position Eliminations as New CEO Drives Expense Reduction Strategy.

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Global consumer goods leader the Swiss conglomerate has declared it will remove 16,000 positions during the upcoming biennium, as its new CEO Philipp Navratil pushes a plan to focus on products offering the “highest potential returns”.

This multinational corporation needs to “adapt more quickly” to stay aligned with a dynamic global environment and embrace a “achievement-focused approach” that refuses to tolerate losing market share, according to the CEO.

He took over from ex-chief executive Laurent Freixe, who was let go in September.

These workforce reductions were made public on the fourth weekday as the corporation reported better revenue numbers for the first nine months of the current year, with increased revenue across its major categories, including coffee and sweets.

The biggest packaged food and drink company, Nestlé owns hundreds of product lines, including Nescafé, KitKat and Maggi.

The company intends to eliminate 12,000 professional positions alongside 4,000 further jobs company-wide within the next two years, it said in a statement.

These job cuts will save the consumer goods leader about 1bn SFr (£940m) per annum as a component of an continuous efficiency drive, it confirmed.

Its equity price increased by more than seven percent following its quarterly update and restructuring news were announced.

The CEO stated: “We are building a corporate environment that embraces a results-driven attitude, that does not accept market share declines, and where success is recognized... The marketplace is evolving, and Nestlé needs to change faster.”

Such change would involve “hard but necessary decisions to cut staff numbers,” he noted.

Equity analyst an industry specialist remarked the update indicated that the new CEO seeks to “bring greater transparency to aspects that were previously more opaque in the company's efficiency strategy.”

These layoffs, she said, are likely an effort to “reset expectations and regain market faith through measurable actions.”

Mr Navratil's predecessor was dismissed by Nestlé in the start of last fall following a probe into reports from staff that he omitted to reveal a romantic relationship with a junior employee.

The former board leader the ex-chairman accelerated his departure date and resigned in the corresponding timeframe.

It was reported at the period that investors attributed responsibility to Mr Bulcke for the corporation's persistent issues.

In the prior year, an study discovered Nestlé baby food products sold in emerging markets included unhealthily high levels of added sugars.

The study, conducted by non-profit organizations, found that in several situations, the identical items marketed in wealthy countries had zero additional sweeteners.

• Nestlé owns a wide array of labels internationally.
• Layoffs will involve sixteen thousand workers over the coming 24 months.
• Savings are anticipated to reach CHF 1 billion each year.
• Share price rose significantly after the announcement.