The layoffs, impacting 12,000 white-collar roles among others, are part of a broader restructuring to enhance efficiency through automation and shared services in response to evolving global market demands. 

“The world is changing, and Nestlé must adapt quickly,” said new CEO Philipp Navratil, who assumed the role last month after a leadership shakeup.With a portfolio of over 2,000 brands, including Nespresso, KitKat, and Purina, Nestlé employs about 277,000 people globally. 

The Switzerland-based company aims to boost long-term competitiveness by redirecting resources to high-growth business units.

The announcement builds on an earlier plan to cut 2.5 billion francs in costs. It follows internal upheaval, including the exit of former CEO Laurent Freixe over a code-of-conduct violation and the resignation of chairman Paul Bulcke, replaced by Pablo Isla, former Inditex chairman.

Nestlé’s shares surged over 8% in Zurich trading, with Vontobel analysts commending Navratil’s focus on innovation and performance. 

The company has been grappling with shareholder pressure due to slow growth, declining demand in China, rising commodity costs, and a 39% U.S. tariff on Swiss imports.

Navratil emphasized a strategic approach to resource allocation, prioritizing high-return opportunities. 

The restructuring coincides with Nestlé’s third-quarter results, which reported a 4.3% sales increase, driven by pricing adjustments and steady demand. 

The company upheld its 2025 outlook, anticipating moderate sales growth and better margins despite global trade challenges.This marks one of Nestlé’s most significant workforce reductions in recent years.