New CEO Philipp Navratil Announces Sweeping Layoffs Over Two Years, Citing Need to Accelerate Change After Sales Decline to €71 Billion. Nestlé, the colossal Swiss food manufacturer, has announced massive global restructuring that includes eliminating 16,000 jobs worldwide over the next two years. The drastic measure was revealed by the new chief executive, Philipp Navratil, in a statement addressing the multinational corporation’s performance. This move signals an urgent commitment to sweeping cost reduction and efficiency efforts designed to stabilize the company in a challenging global food environment.

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.

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