Nestlé announces global layoffs of 16,000 jobs

New Delhi: Swiss food giant Nestlé SA, the parent company of Nestlé India, has unveiled plans to slash 16,000 jobs worldwide, equivalent to about 5.8% of its global workforce, as part of a turnaround strategy under new CEO Philipp Navratil. 

The announcement coincided with Nestlé India's release of its quarterly earnings, which showed a sharp decline in profits despite achieving record-breaking sales.

The job cuts, set to unfold over the next two years, will impact markets and functions across the globe and are subject to consultations in various regions, according to a Nestlé India spokesperson. 

India, one of Nestlé's top ten markets worldwide, could potentially feel the ripple effects, though specifics remain unclear. The Vevey-based company aims to accelerate its recovery amid ongoing challenges in the fast-moving consumer goods (FMCG) sector.

Nestlé India, known for iconic brands like Maggi noodles, Nescafé coffee, and Kit Kat chocolates, reported a 17.37% drop in consolidated net profit to Rs 743.17 crore for the July-September 2025 quarter, down from Rs 899.5 crore in the same period last year. Despite the profit slump, revenue from operations surged 11% to Rs 5,630.23 crore, marking the highest quarterly sales in the company's history, up from Rs 5,074.76 crore a year earlier. Including other operating revenue, total revenue stood at Rs 5,643.61 crore, reflecting a 10.6% increase.

The earnings report marks the first under new Chairman and Managing Director Manish Tiwary, who succeeded Suresh Narayanan following his retirement on July 31, 2025. Tiwary highlighted robust domestic sales growth of 10.8% to Rs 5,411.02 crore, driven by double-digit volume increases in three out of four product groups. "Our domestic sales reached Rs 5,411 crore, the highest ever recorded in any quarter," Tiwary said in a statement, crediting the performance to strong volume-led expansion.

Breaking down the results, Nestlé India's confectionery segment shone with strong double-digit growth, propelled by Kit Kat, which continues to gain market share and positions India as Nestlé's second-largest market for the brand globally. Expansion into rural areas boosted distribution, while Munch and Milkybar also posted high double-digit gains. The prepared dishes and cooking aids category, led by Maggi noodles, delivered double-digit volume and value growth.

Performance in the milk products and nutrition group was mixed, with some segments showing improvement while others remained subdued. However, the company's Purina pet food business achieved its highest turnover since integration, with high double-digit growth. Exports jumped 14.4% to Rs 219.21 crore, fueled by demand for Maggi variants and new launches like Nescafé Sunrise in markets including the UAE, Saudi Arabia, Singapore, and New Zealand, as well as Kit Kat in Singapore and Milkmaid in Sri Lanka.

Channel-wise, e-commerce saw accelerated growth through quick commerce platforms, festive promotions, and targeted product launches. Organised trade also performed strongly with broad-based category expansions and activations.

Total expenses climbed 12.9% to Rs 4,616.73 crore, contributing to the profit squeeze. Looking ahead, Tiwary expressed optimism about recent GST rate amendments, calling them a "positive step" to boost consumption and affordability in the FMCG sector. He reaffirmed Nestlé India's focus on penetration-led volume growth, with plans to ramp up investments in brands, manufacturing, and innovations. "We will remain 'fast, focused, flexible,' adapting to market dynamics as they evolve," Tiwary added.