Nestle will cut around 16,000 jobs worldwide over the next two years as part of a cost-saving measure and to restore investor confidence.
Nestle's new CEO, Philipp Navratil, said Nestle had raised its cost-saving target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027.
He also said 12,000 office workers would be laid off over the next two years, while another 4,000 manufacturing and supply chain workers would be cut as part of ongoing efficiency initiatives.
The job cuts represent 5.8% of Nestle's roughly 277,000 employees.
The Swiss maker of Kitkat, Nespresso and Maggi has been under pressure from investors as sales stalled, its share price plunged, costs soared and debt piled up, in addition to facing US import tariffs.
The food maker is also struggling with weak consumer confidence and changing eating habits.
Bernstein analysts said Nestle's quarterly results added to the pressure of a turnaround, with the job cuts being called a "significant surprise."
Nestle maintained its 2025 outlook, expecting better organic sales growth than in 2024, as well as an underlying operating profit margin of 16%, with a moderate expectation of up to 17%.
