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Food and beverage giant Nestlé has declared it will eliminate 16,000 positions within the coming 24 months, as its new CEO Philipp Navratil pushes a plan to concentrate on products offering the “most lucrative outcomes”.

The Swiss company has to “change faster” to remain competitive in a dynamic global environment and embrace a “performance mindset” that refuses to tolerate declining competitive position, according to the CEO.

His appointment followed ex-chief executive Laurent Freixe, who was dismissed in the ninth month.

The layoff announcement were disclosed on Thursday as the corporation announced stronger performance metrics for the initial three quarters of 2025, with increased product movement across its key product lines, such as beverages and confectionery.

Globally dominant packaged food and drink company, this industry leader owns numerous product lines, among them Nescafé, KitKat and Maggi.

Nestlé plans to get rid of twelve thousand administrative roles alongside four thousand additional positions throughout the organization during the next biennium, it announced publicly.

The lay-offs will cut costs by the consumer goods leader about 1bn SFr (£940m) per annum as a component of an continuous efficiency drive, it confirmed.

Nestlé's share price rose seven and a half percent shortly after its trading update and restructuring news were made public.

Nestlé's leader commented: “We are fostering a culture that welcomes a achievement-oriented approach, that refuses to tolerate market share declines, and where success is recognized... The marketplace is evolving, and we must adapt more rapidly.”

This transformation would encompass “hard but necessary actions to trim the workforce,” he noted.

Financial expert Diana Radu said the announcement signalled that Mr Navratil aims to “enhance clarity to aspects that were once ambiguous in the company's efficiency strategy.”

The job cuts, she explained, are likely an initiative to “recalibrate projections and regain market faith through tangible steps.”

His forerunner was dismissed by Nestlé in early September subsequent to an inquiry into reports from staff that he omitted to reveal a private liaison with a junior employee.

The company's outgoing chair Paul Bulcke accelerated his leaving schedule and stepped down in the same month.

Media stated at the time that shareholders attributed responsibility to the former chairman for the company's ongoing problems.

Last year, an inquiry found its baby formula and foods marketed in developing nations included unhealthily high levels of sweeteners.

The research, by a Swiss NGO and the International Baby Food Action Network, determined that in many cases, the identical items marketed in wealthy countries had no added sugar.

• Nestlé operates numerous product lines worldwide.
• Layoffs will involve sixteen thousand staff members during the next two years.
• Expense cuts are projected to total one billion Swiss francs annually.
• Stock value rose 7.5% following the announcement.