Nestlé announces 16,000 layoffs worldwide due to falling sales days after Pablo Isla’s debut
The Swiss multinational Nestle announced this Thursday the elimination of 16,000 jobs worldwide over the next two years (12,000 of them administrative), which will allow the company reduce your costs by just over 1,000 million of Swiss francs (1,075 million euros) in 2027. This happens days after the landing of the Spanish Pablo Isla (former head of Inditex) as non-executive president of the company and after registering a significant decline in sales for the first nine months of the year. Which has meant a loss of about 1,200 million Swiss francs (1,290 million euros).
In this sense, apart from administrative positions that will be eliminated (about 12,000), the The remaining 4,000 will be concentrated in production and supply chains, as the company explained in a statement. The newly appointed CEO, Philip Navratil, has justified this decision that the world is changing and that this forces Nestlé to take tough measures (in particular the reduction of its workforce) to achieve its savings target of 3 billion francs by 2027.
Navratil, a man of the house
Navratil, who before rising to the highest operational position at Nestlé was the top executive of its business Nespresso, has indicated that the cuts will be made in all geographic areas in which the company is present. Despite the current macroeconomic risks and the uncertainty on the part of consumers, the company maintains its investment commitments in the medium term, adds the manager.
