Nestle To Cut Nearly 6% Roles To Save Costs: Retail Mood Bearish

Nestle SA, one of the world's largest consumer packaged food companies, said it plans to cut 16,000 roles, or about 5.8% of its current global workforce, as it increases its cost-saving target over the next two years.

The cuts will impact about 12,000 white-collar professionals across functions and geographies, and an additional 4,000 positions will be eliminated through productivity initiatives in manufacturing and supply chain.

The move will generate annual cost savings of 1 billion Swiss francs (approximately $1.25 billion) by the end of 2027. The company now aims for 3 billion Swiss francs in yearly savings, up from 2.5 billion Swiss francs earlier.

"We have been stepping up investment... and the results are starting to come through. Now we must do more and move faster," Nestle CEO Philipp Navratil said in a statement.

The development comes as food producers around the world face uneven demand and higher raw material and transportation costs due to a complete and ongoing overhaul in global tariffs.

The Swiss giant also released its results for the first nine months of 2025. Sales decreased 1.9% to 65.87 billion Swiss francs. However, organic sales grew 3.3%, driven by price increases of 2.8%, and beat expectations of 3.2% growth. The numbers underscore the ongoing trend where revenue increase is driven by price hikes rather than volume growth.

On Stocktwits, the retail sentiment for Nestle's U.S. shares shifted a few notches higher in the 'bearish' zone. The stock has risen 16.6% year-to-date.

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