19.02.2026 20:21
One of the world's largest food companies, Nestle, is downsizing as part of a restructuring effort. The food giant, which aims to simplify its operational structure and increase efficiency, will lay off 16,000 employees as part of a strict cost management program.
One of the world's largest food companies, Nestle, announced that it has entered a comprehensive downsizing and restructuring process with the aim of simplifying its operational structure and increasing efficiency.
COMPREHENSIVE STRATEGIC TRANSFORMATION OPERATION
According to a statement from Nestle, the company, which aims to simplify its operational structure and increase efficiency, has launched a comprehensive strategic transformation operation under the leadership of its new CEO, Philipp Navratil.
Coffee, pet products, nutrition and health products, as well as food and snack categories have been identified as the main business lines. Navratil, who took office last October, is implementing a strict cost management program to finance marketing and innovation investments.
16 THOUSAND PEOPLE WILL BE UNEMPLOYED
The planned layoffs of 16 thousand people over the next two years correspond to 6% of the company's total workforce of approximately 280 thousand. With this move, the company aims to achieve annual savings of 1 billion Swiss francs (1.3 billion dollars) by the end of 2027, and it reported that it has already reached 20% of this target.
NET PROFIT FELL BY 17%
Nestle also announced its financial results for 2025. Accordingly, the company's sales fell by 2% last year to 89 billion 490 million Swiss francs (116 billion dollars). Analysts had expected 89.83 billion Swiss francs. The company's net profit decreased by 17% to 9.03 billion Swiss francs. Nestle's organic sales, excluding currency effects and acquisitions, increased by 3.5% last year. Analysts had expected organic growth to rise by 3.38%.
ICE CREAM BUSINESS WILL BE TRANSFERRED
On the other hand, as part of its strategic focus plan, Nestle is continuing advanced discussions to transfer the remaining assets of its ice cream business to Froneri.