Global manufacturer Nestlé has announced that it will reduce its global headcount by around 16,000 as part of cost-saving measures.

The reduction in staff will take place over the next two years, including around 12,000 white-collar professionals driving predicted annual savings of CHF 1 billion by the end of 2027. A further 4,000 jobs will be reduced as part of its “ongoing productivity initiatives” in manufacturing and supply chain.

As part of the retailer’s Fuel for Growth cost-savings program, Nestlé said its savings target had increased to CHF 3 billion, up from CHF 2.5 billion previously, by the end of 2027.

Over the first nine months in 2025, Nestlé’s total group sales reached CHF 65 billion, down slightly from its previous sales of CHF 67 billion during the same period in 2024. However, during the nine months the manufacturer achieved organic sales growth of 3.3%, with 0.6% real internal growth (RIG) and 2.8% pricing.

Organic growth was up from the same period in 2024, which saw organic growth reach 2%.

Nestlé highlighted its strategic priorities for the coming months, which include prioritising growth opportunities and focusing on allocating capital in a “rational, data-based and unbiased way” to support the strongest opportunities with increased investment at scale.

For the remainder of 2025, Nestlé expects organic sales growth to improve compared to 2024, stating that sequentially momentum remains positive, although the comparison base will be “tougher” in Q4.

“We will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns.”

Philipp Navratil, Nestlé CEO, commented: “Driving RIG-led growth is our number one priority. We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum.

“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritising the opportunities and businesses with the highest potential returns. We will be bolder in investing at scale and driving innovation to deliver accelerated growth and value creation. We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded.

“The world is changing, and Nestlé needs to change faster. This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs, and today we are increasing our savings target to CHF 3.0 billion by the end of 2027.

“The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value.”