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Global consumer goods leader Nestlé announced it will cut 16,000 jobs during the upcoming biennium, as its new CEO Philipp Navratil pushes a initiative to prioritize products offering the “greatest profit margins”.

The Swiss company must “evolve at a quicker pace” to keep pace with a evolving marketplace and implement a “performance mindset” that refuses to tolerate ceding ground to competitors, said Mr Navratil.

His appointment followed ex-chief executive Laurent Freixe, who was terminated in September.

The layoff announcement were revealed on the fourth weekday as Nestlé announced improved sales figures for the first three-quarters of the current year, with higher product movement across its major categories, such as hot drinks and snacks.

The biggest packaged food and drink firm, this industry leader owns a multitude of brands, among them Nescafé, KitKat and Maggi.

The company aims to eliminate twelve thousand white collar jobs on top of 4,000 further jobs throughout the organization within the next two years, it announced publicly.

The workforce reduction will result in savings of the corporation around CHF 1 billion per annum as a component of an ongoing cost-savings effort, it said.

Its equity price rose by more than seven percent following its quarterly update and restructuring news were made public.

Nestlé's leader stated: “We are building a culture that welcomes a achievement-oriented approach, that does not accept losing market share, and where winning is rewarded... The marketplace is evolving, and we must adapt more rapidly.”

This transformation would include “tough but required choices to cut staff numbers,” he added.

Equity analyst Diana Radu stated the announcement signalled that the new CEO seeks to “enhance clarity to sectors that were once ambiguous in Nestlé's cost-saving plans.”

These layoffs, she explained, seem to be an initiative to “reset expectations and restore shareholder trust through concrete measures.”

The former CEO was dismissed by Nestlé in the start of last fall subsequent to an inquiry into reports from staff that he failed to report a romantic relationship with a immediate staff member.

The company's outgoing chair the ex-chairman brought forward his exit timeline and stepped down in the same month.

It was reported at the time that shareholders blamed Mr Bulcke for the firm's continuing challenges.

Last year, an inquiry revealed Nestlé baby food products marketed in emerging markets contained excessive amounts of sugar.

The analysis, conducted by non-profit organizations, established that in numerous instances, the same products marketed in developed nations had zero additional sweeteners.

• The corporation manages hundreds of product lines globally.
• Layoffs will involve 16,000 staff members over the upcoming biennium.
• Cost reductions are projected to reach CHF 1 billion annually.
• Share price increased seven and a half percent following the announcement.