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Food and beverage giant Nestlé announced it will cut sixteen thousand roles within the coming 24 months, as its new CEO Philipp Navratil drives a strategy to focus on products offering the “most lucrative outcomes”.

The Swiss company needs to “evolve at a quicker pace” to stay aligned with a dynamic global environment and adopt a “achievement-focused approach” that does not accept losing market share, according to the CEO.

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

These workforce reductions were disclosed on Thursday as the corporation announced stronger sales figures for the first three-quarters of the current year, with increased product movement across its major categories, such as hot drinks and snacks.

Globally dominant packaged food and drink firm, this industry leader owns hundreds of brands, among them its coffee, chocolate, and food brands.

Nestlé intends to eliminate 12,000 white collar positions on top of 4,000 additional positions throughout the organization during the next biennium, it said in a statement.

These job cuts will result in savings of the food giant about one billion Swiss francs each year as within an continuous efficiency drive, it said.

The company's stock value was up seven and a half percent shortly after its quarterly update and job cuts were made public.

Nestlé's leader said: “We are fostering a corporate environment that adopts a performance mindset, that does not accept market share declines, and where success is recognized... The marketplace is evolving, and Nestlé needs to change faster.”

The restructuring would involve “tough but required choices to reduce headcount,” he added.

Market analyst a financial commentator stated the report signalled that the new CEO seeks to “enhance clarity to aspects that were once ambiguous in the company's efficiency strategy.”

The workforce reductions, she said, appear to be an attempt to “adjust outlooks and rebuild investor confidence through measurable actions.”

The former CEO was terminated by the company in the start of last fall after an investigation into whistleblower allegations that he failed to report a private liaison with a junior employee.

The company's outgoing chair Paul Bulcke accelerated his leaving schedule and stepped down in the identical period.

Sources indicated at the time that stakeholders held accountable the former chairman for the firm's continuing challenges.

In the prior year, an inquiry found its baby formula and foods sold in low- and middle-income countries had undesirably high quantities of sweeteners.

The research, carried out by advocacy groups, determined that in several situations, the same products marketed in affluent markets had no added sugar.

• The corporation manages numerous product lines globally.
• Workforce reductions will impact 16,000 staff members over the next two years.
• Expense cuts are anticipated to reach 1bn SFr annually.
• Equity increased seven and a half percent post the announcement.