Nestle plans global headcount reduction of 16,000 over next two years

The company said, “Strategic priorities for the coming months: Rigorously prioritizing growth opportunities: Clear focus on allocating capital in a rational, data-based, and unbiased way, supporting the strongest opportunities with increased investment at scale. Increased ambition on innovation, building on the momentum of the six global ‘big bets’ and broadening our approach, including a step change in consumer insights and marketing capabilities. Accelerating our Fuel for Growth cost savings program: Increased focus on operational efficiency, including leveraging shared services and automating our processes, to drive positive business transformation. Planned global headcount reduction of c. 16,000 over next two years, subject to consultation where applicable: Includes c. 12,000 white-collar professionals across functions and geographies, driving annual savings of CHF 1B by end of 2027; related one-off restructuring costs expected at two times annual savings; Further c. 4,000 headcount reduction as part of ongoing productivity initiatives in manufacturing and supply chain. Total Fuel for Growth cost savings target increased to CHF 3B by the end of 2027. Focused on driving cash generation, committed to sustainable shareholder returns” Clear plan to deliver free cash flow above CHF 8B in 2025, recovering in 2026 onwards with FCF growth in CHF that is consistently higher than dividend growth. Committed to our long-standing dividend practice.”