Nestlé plans major job cuts after posting nine-month financial results
Nestlé plans to cut some 16,000 jobs over the next two years as the company focuses on prioritizing business within it with a greater chance of providing the global food and drink processing company for driving growth and value creation.
According to the company’s financial released today, Nestlé posted for the nine-month of this year sales of CHF 65.9 billion, a decrease of 1.9%. Organic Growth was 3.3%, with positive growth across all Zones and globally managed businesses. Real Internal Growth strengthened to 0.6%, while pricing was steady at 2.8%.
Philipp Navratil, Nestlé CEO commented upon the release of the financials that going forward, "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."
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“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns,” Navaratil added “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.”
This has been a particularly turbulent time for Nestlé with greater global competition and now dealing with the growing disruption being caused to world markets by the imposition of tariffs by the United States.
Earlier in September, the company went through an internal shakeup when it was announced that Nestlé's Board of Directors had appointed Navratil has been appointed as CEO following the dismissal of Laurent Freixe after an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé's Code of Business Conduct.
Going forward, Nestlé said it will be allocating capital in a rational, data-based, and unbiased way, “supporting the strongest opportunities with increased investment at scale, and an increased ambition on innovation, building on the momentum of the six global ‘big bets’ and broadening our approach, including a step change in consumer insights and marketing capabilities.”
Of the 16,000 jobs to be cut over the next two years, it would include 12,000 white-collar professionals across functions and geographies, with the remaining 4,000 reductions as part of ongoing productivity initiatives in manufacturing and supply chain.
