Nestlé to cut 16,000 global jobs in drive to save £2.8bn

Nestlé is to axe 16,000 jobs over the next two years as the Swiss-based owner of KitKat and Nescafé tries to reduce costs and increase sales.

- Mark Sweney

The cuts will target 12,000 white-collar staff and 4,000 in manufacturing and the supply chain close to 6% of its global workforce.

"The world is changing and Nestlé needs to change faster," Philipp Navratil, the company's chief executive, said yesterday. "This will include making hard but necessary decisions to reduce headcount over the next two years. We will do this with respect and transparency."

Navratil, who replaced Laurent Freixe last month when he was fired for failing to disclose a romantic relationship with a subordinate, announced an acceleration of his predecessor's cost-saving plans.