On Thursday, October 16, 2025, at 08:12 PM WAT, Nestlé announced a bold plan to trim its workforce.
The new head of the organization aims to reduce costs and restore trust among investors as the global market shifts.
Workforce Reduction and Cost Goals
Nestlé will cut thousands of jobs, affecting a small portion of its large team.
The leader raised the savings target to a significant amount, up from an earlier goal, aiming to achieve this by the end of 2027. This move reflects a push to streamline operations amid changing consumer trends and rising expenses.
Leadership Shake-Up
Nestlé has faced a rare period of internal change. The new leader stepped in after the previous chief was removed due to a personal conflict.
The chairman also left early, paving the way for a new figure to take charge. The job cuts, split between office roles and factory staff over two years, are part of this efficiency drive.
Tackling Market Challenges
Known for its popular snacks, drinks, and seasonings, Nestlé struggles with slow sales and a declining stock value.
Rising trade barriers and higher costs have added pressure. The leader said, “The world is evolving, and we must adapt quickly.” Recent growth in product demand offers a glimmer of hope as the team works to regain ground.
Positive Signs and Future Focus
Analysts see the cuts as a bold step forward. Nestlé reported a slight uptick in sales volume this quarter, beating low expectations.
This progress gives the new leader room to shape the company’s direction. He emphasized building a culture that values performance and market gains.
Nestlé is reviewing its water and premium drink lines, along with less profitable health products. These changes aim to sharpen focus on high-demand items.
Steady Outlook for Next Year
Nestlé kept its financial forecast for next year unchanged. It expects sales to grow compared to this year. Profit margins should stay strong, even with higher trade costs affecting imports. Most savings are planned for the next two years, with a portion expected by year-end.
Sales rose this quarter, driven by price increases in coffee and sweets. However, one major market lagged due to overemphasis on distribution rather than demand.
The finance head noted, “We’re fixing this by streamlining distribution and boosting customer interest.”
As Nestlé adjusts, it aims to balance cost savings with growth in a competitive landscape.
Electricity Key to Unlocking Africa’s Job Growth, Says World Bank
