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New CEO Philipp Navratil Promises Global Restructuring by 2027 to Regain Credibility and Reduce Costs After Corporate Scandal.
Nestlé announced a mass layoff of 16,000 employees worldwide as part of a broad global restructuring plan. The measure was revealed this Thursday (16) by the company’s new CEO, Philipp Navratil, while disclosing the financial results for the first nine months of 2025. According to the portal G1, the Swiss group, owner of brands such as Nescafé, Maggi, and KitKat, recorded a 1.9% decline in sales, totaling 65.9 billion Swiss francs (about R$ 452 billion), and faces one of the biggest crises in its recent history.
According to Navratil, who took over the company in September, the changes are “difficult but necessary” to ensure competitiveness in a scenario of rising costs and shaken confidence. The announcement comes weeks after an internal scandal involving former CEO Laurent Freixe, who was removed for violating the company’s code of conduct.
Global Restructuring and Impact on Operations
Nestlé’s plan includes mass layoffs of 12,000 administrative positions across various regions and departments, as well as the elimination of another 4,000 positions linked to the modernization of production and supply chain.
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According to the official statement, the measure is expected to generate annual savings of up to 1 billion Swiss francs by the end of 2027, double the initially projected amount.
Navratil stated that the company needs to “act with more agility and focus” to adapt to the new global consumption landscape, marked by persistent inflation, changing eating habits, and strong competition from local brands.
“The world is changing, and Nestlé needs to adapt quickly. This will require tough but essential decisions for the company’s future,” said the executive.
Internal Scandal and Leadership Change
The restructuring occurs amid a reputation crisis that began with the departure of former CEO Laurent Freixe, who was fired after the confirmation of a relationship with a subordinate, violating the multinational’s ethical standards.
Although the initial internal investigation found no irregularities, new reports revealed that the involved employee had been promoted during the relationship, which led to the dismissal of the French executive.
The episode had significant repercussions in Switzerland and increased pressure for transparency and corporate governance within the company.
With the departure of Freixe and the chairman of the board Paul Bulcke, Navratil has the mission of restoring the trust of shareholders and employees amid the institutional turmoil.
Strategy to Regain Sales and Image
In addition to personnel cuts, the new CEO aims to review regional portfolios, focusing investments on the most profitable brands and in the nutrition and sustainability lines, which are considered strategic sectors for the company’s future.
Nestlé is also expected to reduce administrative overlaps, simplify management structures, and strengthen operations in emerging countries, particularly in Latin America and Asia, where there is still potential for growth.
Despite the challenges, analysts believe that the restructuring could represent a turning point in the company’s trajectory, provided it is accompanied by greater efficiency and clarity in internal practices.
“The brand still has global strength, but it needs to reconnect with the consumer and prove that it has learned from its mistakes,” summarized an analyst interviewed by the France Presse agency.
Market Reaction and Next Steps
Following the announcement of the mass layoffs, Nestlé’s shares recorded a slight increase on the Zurich Stock Exchange, reflecting investors’ confidence in the new management.
Still, the company faces the challenge of balancing cost cuts with the preservation of its corporate culture and the image built over more than 150 years.
For many employees, the atmosphere is one of uncertainty.
Some of the cuts are expected to occur in phases, until 2027, and will involve negotiations with unions and local governments in different countries.
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