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The company aims to streamline operations and step up innovation as nine-month 2025 sales show positive growth momentum.
Nestlé has announced plans to reduce around 16,000 roles globally over the next two years, as part of its “Fuel for Growth” cost-saving programme. The move, which remains subject to consultation where applicable, is aimed at increasing operational efficiency and automating processes to drive positive business transformation.
According to the group, about 12,000 white-collar roles across functions and geographies will be affected, generating annual savings of CHF1bn (~US$1.27bn) by end-2027, double its earlier target. A further 4,000 roles will be reduced through ongoing productivity measures in manufacturing and supply chain. Related one-off restructuring costs are expected to be twice the annual savings.
In an update on Thursday (16 October), Philipp Navratil, Nestlé CEO said the company’s top priority remains driving real internal growth (RIG). "We have been stepping up investment to achieve this, and the results are starting to come through. Now we must do more and move faster to accelerate our growth momentum," he shared.
He added that while the company will be rigorous in allocating resources, it will also be bolder in investing at scale and driving innovation to accelerate growth and value creation.
Nine-month sales 2025: Positive trends and steady growth
Nestlé reported organic growth of 3.3% for the first nine months of 2025, up from 2.0% in the same period last year. This reflected 0.6% RIG and 2.8% pricing, showing a sequential improvement across all zones and categories.
Among the company’s geographic zones, Europe led with 4.3% organic growth, followed by Asia, Oceania, and Africa (AOA) at 4.3% and the Americas at 2.5%. Global business segments also performed well, with Nespresso up 6.7%, Nestlé Waters & Premium Beverages up 4.4%, and Nestlé Health Science up 3.8%.
Despite strong organic growth, reported sales declined 1.9% to CHF65.9bn (~US$83.4bn), mainly due to a 5.4% negative foreign exchange impact.
According to the financial report, Greater China remained a drag on overall performance, reducing the Group’s organic growth by around 80 basis points. However, Nestlé said new management is now in place and implementing plans to transform the business.
Growth investments and cost savings on track
Nestlé’s increased investments in its priority growth areas contributed around 60 basis points to overall growth, while performance in its 18 previously underperforming business units also improved.
The company has raised its total Fuel for Growth savings target to CHF3bn (~US$3.8bn) by end-2027, up from CHF2.5bn (~US$3.2bn). This will involve optimising shared services, automating processes, and improving capital allocation based on data-driven decision-making.
Looking ahead, Nestlé aims to deliver free cash flow above CHF8bn (~US$10.2bn) in 2025, with steady recovery and growth thereafter. The group reaffirmed its commitment to maintaining its long-standing dividend policy.
Outlook for the remainder of 2025
Nestlé expects organic sales growth to improve compared to 2024, although the company noted that the comparison base will be tougher in the final quarter. The underlying trading operating profit margin is expected to be at or above 16%, reflecting continued investment for growth and the effects of tariffs and exchange rate movements.
The company said that despite ongoing risks from macroeconomic and consumer uncertainties, it remains committed to investing for the medium term.
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