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Global consumer goods leader Nestlé announced it will remove 16,000 positions during the upcoming biennium, as the recently appointed chief executive Philipp Navratil pushes a plan to prioritize products offering the “most lucrative outcomes”.

This multinational corporation must “evolve at a quicker pace” to remain competitive in a changing world and implement a “achievement-focused approach” that rejects declining competitive position, according to the CEO.

His appointment followed former CEO Laurent Freixe, who was terminated in last fall.

The layoff announcement were made public on the fourth weekday as the corporation reported better revenue numbers for the initial three quarters of the current year, with expanded sales across its major categories, including coffee and sweets.

The biggest consumer packaged goods corporation, this industry leader owns hundreds of product lines, among them Nescafé, KitKat and Maggi.

Nestlé intends to eliminate 12,000 professional positions on top of 4,000 additional positions company-wide during the next biennium, it said in a statement.

The workforce reduction will result in savings of the food giant around CHF 1 billion each year as part of an continuous efficiency drive, it stated.

Nestlé's share price rose seven and a half percent soon after its quarterly update and job cuts were made public.

Mr Navratil said: “We are building a organizational ethos that welcomes a performance mindset, that does not accept market share declines, and where success is recognized... The world is changing, and Nestlé needs to change faster.”

This transformation would encompass “difficult yet essential decisions to trim the workforce,” he added.

Market analyst Diana Radu stated the report indicated that Mr Navratil wants to “bring greater transparency to sectors that were once ambiguous in the company's efficiency strategy.”

These layoffs, she explained, appear to be an effort to “reset expectations and regain market faith through measurable actions.”

Mr Navratil's predecessor was sacked by the company in the beginning of the ninth month following a probe into whistleblower allegations that he omitted to reveal a personal involvement with a junior employee.

The former board leader Paul Bulcke moved up his leaving schedule and stepped down in the identical period.

Media stated at the time that investors blamed the outgoing leader for the firm's continuing challenges.

Last year, an inquiry revealed its baby formula and foods available in developing nations had excessive amounts of sugar.

The study, by a Swiss NGO and the International Baby Food Action Network, established that in several situations, the same products sold in affluent markets had no extra sugars.

• The corporation manages a wide array of labels internationally.
• Job cuts will involve 16,000 workers over the coming 24 months.
• Savings are projected to amount to 1bn SFr annually.
• Share price climbed 7.5% after the update.