Nestlé CEO takes drastic action amid slump

Nestlé's new CEO hasn't wasted any time making his mark on the company.

About six weeks after the consumer goods company fired former CEO Laurent Freixe over an undisclosed romantic relationship with a direct subordinate, current CEO Philipp Navratil revealed that the company is cutting 16,000 jobs.

Nestlé 2024 sales by region:

• North America: 35% of sales ($40.5 billion)
• Europe: 24% of sales ($27.88 billion)
• Asia, Oceania, Africa: 21% of sales ($24.23 billion)
• Latin America: 14% of sales ($15.9 billion)
• Greater China: 6% of sales ($6.81 billion)

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. We will do this with respect and transparency. Along with other measures, we are working to substantially reduce our costs

Nestle CEO Philipp Navratil

The company raised its cost-saving target to $3.79 billion by 2027.

Nestlé, the company behind Nescafé, Gerber, and Hot Pockets, saw its stock shoot up 1.2% at last check Oct. 17 due to the company's decision to cut 6% of its 277,000-person global workforce.

The company says about 12,000 of the job cuts will be white-collar roles, while 4,000 roles in manufacturing and supply chain will also be eliminated.

The workforce contraction has already begun, and the company plans to continue reducing headcount over the next two years.

Nestlé is a multinational company with employees worldwide, but North America is by far its biggest market, representing 35% of its sales.

Nestlé reports third-quarter sales growth

Nestle had an otherwise strong third quarter, with organic sales rising to 4.3% from an average of 2.9% in the first half of the year.

However, sales were 0.4% lower in the Americas, the only region that experienced a decline, as pricing rose 2.9%.

"As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing the opportunities and businesses with the highest potential returns," Navratil said.

"The actions we are taking will secure Nestlé’s future as a leader in our industry. Collectively, they will enable us to improve our overall performance and deliver shareholder value."

Consumer goods giants like Procter & Gamble are also laying off employees

The Swiss multinational isn't the only consumer goods giant laying off employees.

Consumer goods layoffs in 2025

• Procter & Gamble: The world's largest consumer goods company said it would cut 7,000 jobs, equivalent to about 15% of its workforce. Those layoffs were aimed at its white-collar workforce.
• Moët Hennessy: LVMH's wine and spirits business said it was laying off 1,200 employees (10% of its workforce) in April.
• Estee Lauder: The cosmetics giant revealed it was laying off up to 7,000 employees (10% of its workforce) in February as part of a company restructuring due to reduced demand.
  
  Source:Intellizence

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"Input costs increased at a faster pace due to higher import costs and the higher cost of services such as insurance, health care, and technology solutions," the Federal Reserve said in its Beige Book report this month.

"In most Districts, more employers reported lowering headcounts through layoffs and attrition, with contacts citing weaker demand [and] elevated economic uncertainty."

According to the Bureau of Labor Statistics, based on a monthly survey of about 21,000 businesses, U.S. businesses have laid off 13.8 million employees through August.

August layoffs were 4.6% higher in August 2025 than a year ago. Over 1% of employed people were laid off or discharged that month as the global economy deals with the fluctuating tariffs coming out of the United States.

Other issues, like immigration enforcement, are also playing a role. The construction industry saw the largest layoff and discharge rate, followed by professional services and transportation.

High inflation and tariffs have hit consumer spending in recent months, as prices have increased under President Doland Trump's economic plan.

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