New Delhi: Nestle, the Swiss food and beverage giant known for brands like Nespresso, Kit Kat, Perrier, and Purina, announced on Thursday that it will cut 16,000 jobs worldwide over the next two years. 

The move comes as the company aims to speed up its transformation under new CEO Philipp Navratil, who took charge in early September.

“The world is changing, and Nestle needs to change faster,” Navratil said in a statement.

He added that the job cuts were part of “hard but necessary decisions to reduce headcount” and streamline operations amid changing market conditions.

Of the 16,000 jobs being cut, 12,000 are white-collar positions. Nestle expects this reduction to save one billion Swiss francs, which is double the savings initially planned.

These layoffs come in addition to 4,000 job cuts already in progress in production and supply chain roles.

The company has raised its total savings target to three billion Swiss francs by the end of 2027, up from an earlier goal of 2.5 billion.

The announcement coincided with the release of Nestle’s nine-month financial results, which showed a 1.9 per cent drop in sales to 65.9 billion Swiss francs (around $83 billion).

Organic sales grew 3.3 percent during the period, mainly due to price increases of 2.8 percent.

The Indian arm of the company, Nestle India, also reported a 17 per cent year-on-year (YoY) decline in its consolidated net profit for Q2 FY26.

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The FMCG firm posted a profit of Rs 743 crore in Q2, it informed in its exchange filing.

Analysts said the results reflect both economic pressures and ongoing restructuring efforts.

Navratil takes over at a challenging time for Nestle. The previous CEO was dismissed in September over an office relationship, and the company chairman left earlier than expected.

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Nestle has also been dealing with a bottled water scandal in France that began in 2024, adding pressure on the new leadership to stabilize the company and restore investor confidence. (IANS)