HHS Secretary Robert F. Kennedy Jr. discusses efforts to phase out petroleum-based synthetic dyes in the nation’s food supply on “Jesse Watters Primetime.”
Nestlé, the world’s largest packaged food company, will reduce its workforce by 16,000 people over the next two years in a bid to “significantly” reduce costs under new CEO Philipp Navratil.
In Thursday’s announcement, Navratil set a new target to achieve cost savings of 3 billion Swiss francs by the end of 2027, which is higher than its previous target.
“As Nestlé moves forward, we will be rigorous in our approach to resource allocation, prioritizing opportunities and businesses with the highest return potential,” Navratil said.
HOW NESTLE CEO’S INAPPROPRIATE RELATIONSHIP WITH A SUBORDINATE WAS DISCOVERED
The chief executive, in office for only a month, said the company needed to “do more and act faster to accelerate” its growth momentum. To do this, Navratil said Nestlé was looking to be “bolder in investing at scale” and leveraging innovation to drive growth and increase value.
Nestlé CEO Philipp Navratil has set a new goal: to achieve cost savings of 3 billion Swiss francs by the end of 2027. (Kevin Carter/Getty Images)
“We foster a culture that embraces a performance mindset, that does not accept losing market share and where winning is rewarded,” he said, adding that the company’s measures, including reducing its workforce, “will secure Nestlé’s future as a leader in our industry” while generating value for shareholders.
When Navratil took the helm, board chairman Paul Bulcke praised his “impressive track record of delivering results in challenging environments.”
LAURENT FREIXE, CEO of NESTLE, ousted due to inappropriate working relationship with a subordinate
Since taking the role, Navratil has worked to put the company on a path to growth after a turbulent year in which former CEO Laurent Freixe was ousted for inappropriate labor relations less than a year after his appointment.
Nestlé will cut 16,000 people from its workforce over the next two years. (Justin Sullivan/Getty Images)
In September, Freixe, who had played a central role in shaping the company’s strategy and portfolio, was removed from his position following an investigation into a romantic relationship with a direct report that violated Nestlé’s code of business conduct. Freixe leaves the company without an exit plan.
CRACKER BARREL DISMISSES CRITICISMS AS A “VOCAL MINORITY” AS Rival RESTAURANT ADDS COUNTERPLAY
Freixe’s ouster is the latest setback for a company whose former CEO, Ulf Mark Schneider, resigned voluntarily due to underperformance issues.
Nestlé CEO Philipp Navratil, in office for only a month, said the company needed to “do more and act faster to accelerate” its growth momentum. (Fabrice Cofrini/AFP via / Getty Images)
The company had a sluggish first half for fiscal 2025, with organic growth of 2.9%, most of which was driven by price increases rather than higher sales volumes. Real internal growth (RIG), which measures volume and product mix, rose just 0.2%, underscoring weak consumer demand and volume pressures.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
In the third quarter, however, performance improved, with Nestlé reporting organic sales growth of 4.3%.
