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Food and beverage giant Nestlé has declared it will remove sixteen thousand positions during the upcoming biennium, as its new CEO Philipp Navratil pushes a strategy to focus on products offering the “most lucrative outcomes”.

The Swiss company has to “change faster” to stay aligned with a changing world and implement a “results-oriented culture” that rejects ceding ground to competitors, said Mr Navratil.

He took over from former CEO the previous leader, who was let go in the ninth month.

The job cuts were made public on Thursday as Nestlé announced better sales figures for the first nine months of the current year, with higher product movement across its primary segments, encompassing beverages and confectionery.

Globally dominant food & beverage corporation, this industry leader owns numerous product lines, among them Nescafé, KitKat and Maggi.

The company intends to get rid of twelve thousand administrative roles alongside 4,000 further jobs throughout the organization over the coming 24 months, it announced publicly.

The workforce reduction will result in savings of the corporation about CHF 1 billion annually as within an continuous efficiency drive, it confirmed.

Nestlé's share price was up 7.5% soon after its performance report and restructuring news were revealed.

Mr Navratil said: “We are fostering a culture that adopts a achievement-oriented approach, that does not accept market share declines, and where achievement is incentivized... Global dynamics are shifting, and we must adapt more rapidly.”

This transformation would encompass “hard but necessary decisions to trim the workforce,” he noted.

Equity analyst an industry specialist said the report suggested that Mr Navratil wants to “enhance clarity to areas that were formerly less clear in its expense reduction initiatives.”

The job cuts, she said, seem to be an attempt to “reset expectations and rebuild investor confidence through measurable actions.”

Mr Navratil's predecessor was dismissed by Nestlé in the start of last fall following a probe into internal complaints that he omitted to reveal a romantic relationship with a direct subordinate.

The former board leader the ex-chairman brought forward his departure date and stepped down in the corresponding timeframe.

Sources indicated at the time that investors blamed Mr Bulcke for the corporation's persistent issues.

The previous year, an study revealed infant nutrition items from the company marketed in emerging markets had excessive amounts of sweeteners.

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

• The corporation owns numerous product lines worldwide.
• Workforce reductions will involve 16,000 workers during the next two years.
• Savings are estimated to reach one billion Swiss francs each year.
• Stock value rose 7.5% after the news.