Nestlé Posts Strong Q3 Growth, But Announces 16,000 Job Cuts

Nestlé surprised the market with 1.5% growth in real internal sales (RIG) in the third quarter—well above expectations of 0.3%. The boost came mainly from higher pricing in coffee and confectionery.

That said, the packaged-foods giant also revealed plans to cut 16,000 jobs globally over the next two years. The reductions include 12,000 white-collar roles and 4,000 manufacturing/supply chain positions, affecting its workforce of roughly 277,000.

New CEO Philipp Navratil, formerly head of Nespresso, is leading the push. He has made “RIG-led growth” his top priority and plans to increase cost savings to 3 billion Swiss francs by 2027. That’s up from a previous goal of 2.5 billion.

The leadership shakeup has followed a period of turbulence at the top. Navratil replaced Laurent Freixe, who was dismissed in September. Around the same time, chairman Paul Bulcke stepped down early to make way for Pablo Isla, former head of Inditex.

The mixed news—strong sales but aggressive cuts—speaks to Nestlé’s balancing act. The company needs to protect margins and competence as it deals with rising input costs and investor pressure, but must also ensure growth doesn’t falter.

If Navratil can deliver on rising volume and smarter costs, Nestlé may reestablish momentum. But the challenge is steep: it must do so while managing internal changes and external pressures in consumer markets.