Nestlé Faces Major Shakeup: New CEO, Mass Layoffs, and Automation

It’s been a turbulent year inside the glass-fronted headquarters of Nestlé, the Swiss food giant whose products stock pantries across the globe. On September 1st, the board dismissed CEO Laurent Freixe, barely a year into his tenure, after revelations of an undisclosed relationship with a subordinate. His predecessor, Mark Schneider, had also been let go just a year prior. For a company that’s prided itself on steady leadership over its 159-year history, this rapid turnover was a shock, not just to employees but to investors and industry observers alike.

Now, Nestlé finds itself at a crossroads. Stepping into the role is Philipp Navratil, the third chief executive in just over twelve months—a rare feat in the company’s long history. Navratil’s first weeks on the job have been marked by decisive, and for many, difficult actions. The most headline-grabbing: a plan to lay off 16,000 employees worldwide over the next two years, a move aimed at transforming the business and restoring profitability.

The layoffs, announced in mid-October, are set to affect 6% of Nestlé’s global workforce. Of these, 12,000 are white-collar jobs, including positions in administration, management, and office support. The remaining 4,000 cuts will hit manufacturing and supply-chain roles. According to a company statement, some of these white-collar roles will be automated—a sign of the times, as Nestlé leans into digitalization to streamline its sprawling operations.

“We are transforming how we work,” Navratil wrote in a LinkedIn post accompanying the company’s earnings report and layoff announcement. “We are evolving and will simplify our organization and automate our processes.” The statement, while measured, signals a clear shift: Nestlé is preparing to become leaner, faster, and more digitally integrated.

The underlying numbers paint a picture of why such drastic action has become necessary. For the first nine months of 2025, Nestlé’s sales fell by 1.9%, dropping to approximately $82.8 billion compared to the same period last year. Organic sales—a measure that strips out currency fluctuations and acquisitions—did rise by 3.3%. But for a company of Nestlé’s scale, even small dips in headline numbers can send ripples through boardrooms and shareholder meetings.

According to Fortune, the reduction will be global, but each market will tailor its own approach to restructuring. This means the impact will be felt differently in different regions, depending on local labor laws, market conditions, and Nestlé’s strategic priorities in those geographies.

Automation is a central pillar of Navratil’s turnaround plan. The company’s statement refers repeatedly to “digitalization and automation,” with a goal of achieving operational efficiency. For Nestlé, this means not just replacing repetitive tasks with software and machines, but also rethinking how teams are structured and how decisions are made. It’s a profound shift for a company that, until recently, had relied on a traditional management hierarchy and manual processes in many parts of its business.

The timing of these changes is no accident. Consumer preferences are shifting away from processed foods, and price increases have dampened demand for some of Nestlé’s best-known brands, from KitKat to Nesquik. As The Economist notes, the company is facing headwinds that have forced consumer packaged goods giants to rethink their supply chains and product portfolios. In this context, the pressure to cut costs and respond to market trends has grown more urgent.

Navratil’s message to employees and stakeholders is blunt: “The world is changing, and Nestlé needs to change faster,” he said in the company’s disclosure. “This will include making hard but necessary decisions to reduce headcount over the next two years… Along with other measures, we are working to substantially reduce our costs.”

But for many, the human cost of these changes looms large. While automation may make the company more efficient, thousands of workers will be forced to seek new opportunities, often in a labor market still adjusting to post-pandemic realities and technological disruption. Nestlé has promised support for affected workers, but details remain scarce as individual markets work out their own plans.

Internally, the mood is tense. Employees accustomed to a culture of stability now face uncertainty about their future at the company. The rapid turnover at the top, coupled with sweeping layoffs, has led some observers to wonder whether Nestlé can maintain the values and traditions that have long been its hallmarks.

On the other hand, some analysts see opportunity in the upheaval. Leaner operations could make Nestlé more nimble in responding to fast-changing consumer demands. Automation, if implemented thoughtfully, could free up resources for innovation in healthier products and sustainable practices. But the risk of alienating loyal staff and eroding morale remains a real concern.

As the dust settles, Nestlé’s next chapter will be shaped by the choices made in boardrooms and factories alike. Will Navratil’s vision of a streamlined, automated Nestlé restore the company’s fortunes and satisfy shareholders? Or will the cost-cutting measures deepen the company’s challenges, both internally and in the marketplace?

For now, Nestlé’s story is one of transition—a test case for how legacy companies navigate the pressures of technological change, shifting consumer habits, and the human realities of corporate restructuring. The eyes of the industry are watching, and so are the millions who rely on Nestlé products every day.

Assessment: Nestlé’s leadership shakeup and mass layoffs reflect both the urgency and risk inherent in transforming a legacy company under pressure. Automation may deliver efficiency, but success will hinge on balancing digital progress with the human realities faced by its global workforce.