The announcement coincided with the publication of the company’s nine-month figures, which highlighted the urgency of the new strategy. Nestlé’s sales were down by 1.9%, reporting a total of €71 billion for the period, according to AFP data. Navratil, who took the helm in early September, starkly stated, “The world is changing, and Nestlé needs to change faster,” indicating that these layoffs are “hard but necessary decisions” to ensure the company’s long-term competitive viability in the FMCG and dairy-related sectors.

Navratil’s appointment was made after the previous CEO, Laurent Freixe, was dismissed following an internal investigation into an undisclosed romantic relationship with a direct subordinate, a breach of Nestlé’s Code of Business Conduct. This governance turmoil, overseen by Chairman Paul Bulcke, preceded the strategic cutbacks and underscores a period of dramatic change at the executive level before the financial restructuring began in earnest.

Despite the abrupt change in leadership and strategy, Chairman Paul Bulcke affirmed confidence in the new CEO’s ability to execute a turnaround. Bulcke noted that Navratil, who started at Nestlé in 2001 and has an “impressive track record of achieving results in challenging environments,” is “renowned for his dynamic presence” and a collaborative management style. The board maintains that the fundamental company strategy remains on course, but the execution will be streamlined and accelerated to enhance performance.