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Food and beverage giant Nestlé has declared it will remove 16,000 positions 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 “change faster” to remain competitive in a dynamic global environment and embrace a “results-oriented culture” that does not accept ceding ground to competitors, according to the CEO.

He replaced ex-chief executive the previous leader, who was dismissed in September.

The job cuts were revealed on Thursday as Nestlé reported better sales figures for the first nine months of the current year, with higher revenue across its key product lines, encompassing beverages and confectionery.

Globally dominant food & beverage company, this industry leader manages hundreds of brands, among them well-known names in coffee and snacks.

The company intends to remove twelve thousand professional jobs in addition to 4,000 additional positions across the board during the next biennium, it stated officially.

The lay-offs will cut costs by the corporation approximately one billion Swiss francs each year as part of an ongoing cost-savings effort, it stated.

Nestlé's share price rose seven and a half percent following its quarterly update and layoff announcement were announced.

Nestlé's leader stated: “We are building a culture that welcomes a results-driven attitude, that does not accept market share declines, and where achievement is incentivized... The marketplace is evolving, and the company requires accelerated transformation.”

Such change would involve “hard but necessary choices to trim the workforce,” he noted.

Equity analyst Diana Radu said the update signalled that Nestlé's leader seeks to “bring greater transparency to aspects that were formerly less clear in its expense reduction initiatives.”

The workforce reductions, she explained, are likely an attempt to “recalibrate projections and rebuild investor confidence through tangible steps.”

His forerunner was dismissed by Nestlé in early September following a probe into whistleblower allegations that he failed to report a private liaison with a junior employee.

The company's outgoing chair Paul Bulcke brought forward his leaving schedule and resigned in the identical period.

Media stated at the time that investors blamed the former chairman for the corporation's persistent issues.

In the prior year, an study revealed Nestlé baby food products marketed in developing nations had unhealthily high levels of added sugars.

The research, by a Swiss NGO and the International Baby Food Action Network, determined that in many cases, the same products marketed in affluent markets had zero additional sweeteners.

• Nestlé manages hundreds of product lines worldwide.
• Layoffs will impact 16,000 workers during the coming 24 months.
• Expense cuts are projected to reach one billion Swiss francs each year.
• Equity climbed seven and a half percent following the update.