Nestle’s US-listed Shares Rally On Plans To Reduce 16,000 Global Jobs Over Two Years

Nestle SA (NSRGY) U.S.-listed shares jumped nearly 9% in early trading on Thursday after the consumer goods giant announced a planned global headcount reduction of 16,000 over the next two years.

The company said that the job cuts include 12,000 white-collar professionals across functions and geographies, driving annual savings of CHF 1 billion ($1.26 billion) by the end of 2027 and a further 4,000 headcount reduction as part of ongoing productivity initiatives in manufacturing and supply chain.

“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,” CEO Philipp Navratil said.

“We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs, and today we are increasing our savings target to CHF 3.0 billion by the end of 2027,” he added.

Navratil was appointed as the CEO in September, replacing Laurent Freixe. The company had said the departure of Freixe followed an investigation into an undisclosed romantic relationship with a direct subordinate, which breached Nestle’s code of business conduct.

Retail sentiment on Nestle improved to ‘neutral’ from ‘bearish’ territory a day ago, with message volumes at ‘normal’ levels, according to data from Stocktwits.

Meanwhile, as part of its third-quarter results, the company said it expects to deliver free cash flow (FCF) above CHF 8 billion in 2025. 

Nestle also noted that organic sales growth in fiscal 2025 is expected to improve compared to 2024, and momentum remains positive sequentially. For nine months, Nestle posted an organic sales growth of 3.3%.

The company said Greater China continues to be a drag, impacting third-quarter organic sales by 80 basis points. 

Exchange Rate: 1 CHF = $1.26

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