Nestlé corporate restructuring and debt reduction

Nestlé has initiated a series of strategic measures to manage its debt and improve operational efficiency. CEO Philipp Navratil previously outlined a debt-reduction plan targeting a debt-to-EBITDA ratio of approximately 2.85 by the end of 2025. This strategy focuses on divesting non-core assets, such as the company’s water business and Blue Bottle Coffee, while maintaining its roughly 20% stake in L'Oréal.

Following these financial objectives, the company announced a global restructuring program titled ‘Fuel for Growth’. This initiative aims to achieve 3 billion Swiss francs in savings and includes the elimination of 16,000 jobs—approximately 5.8% of its workforce—by the end of 2027. The layoffs will affect 12,000 administrative and professional roles and 4,000 positions in manufacturing and supply chain sectors.

The restructuring involves increasing automation, centralizing services, and closing underperforming manufacturing units, including two European facilities such as a site in Neuss, Germany. Despite these cuts, Nestlé reported a net profit of 3.47 billion Swiss francs for the first half of 2026 and continues to invest in expansion in Brazil.