Nestlé’s newly appointed CEO, Philip Navratil, has announced plans to cut around 16,000 jobs worldwide to boost cost savings to CHF 3 billion by 2027, up from a previous target of CHF 2.5 billion.

Richard Kottmeyer, FutureBridge strategic partner and global practice leader in food, agriculture, and nutrition, explains that this is not simply cost containment but a “textbook capital unlock and innovation velocity strategy, the kind that reclaims growth by freeing resources from legacy drag.” He adds, “The announced 16,000 job cuts (≈7% of the workforce) are not simply cost containment; they’re a structural pivot toward faster innovation cycles, sharper portfolio focus, and disciplined reinvestment in high-return categories.” Kottmeyer highlights that Navratil’s agenda mirrors his prior success with Nestlé’s coffee systems business, focusing on shorter innovation cycles, premiumization, and consumer-centric agility. This new ethos inside Nestlé is captured by the mantra: “Winning is rewarded; losing share isn’t tolerated.”

For a comprehensive look at Navratil’s bold strategy and its implications, read the complete article here.