Major Food Company to Cut 16,000 Jobs as New CEO Launches Cost-Saving Plan

Administrator

Administrator
Staff member
Apr 20, 2025
1,073
229
63

Major Food Company to Cut 16,000 Jobs as New CEO Launches Cost-Saving Plan

68f0e2815f1d4.jpg


Major Food Conglomerate Slashes Thousands of Jobs in Cost-Cutting Strategy

Changes are sweeping through the world's top producer of packaged food and drink, which has announced the elimination of 16,000 jobs over the next couple of years. The company's new Chief Executive Officer is spearheading this transformation with the aim to focus more on goods that promise the highest potential returns.

The CEO, who recently stepped into the role, expressed the company's need to rev up its pace of change in order to stay competitive in a dynamic market. He emphasized the importance of maintaining a competitive spirit that rejects the idea of losing market share to competitors.

Leadership Transition

The new CEO stepped in after the previous leader was shown the door last fall due to a personal relationship with an employee. The announcement of job cuts came as the company reported an increase in sales for the first three quarters of the year, with a rise in sales across all major categories, including coffee and confectionery.

Job Cuts and Cost-Savings

The company, known for owning numerous popular brands such as a famous coffee brand, chocolate wafer, and instant noodle brand, plans to eliminate 12,000 white collar jobs, in addition to 4,000 other positions within the next couple of years. This step is part of a larger plan to save the company around 1bn Swiss Francs (equivalent to £940m) annually.

The news of the job cuts and the promising sales update led to a surge in the company's stock prices, which rose by 7.5% shortly after the announcement.

A Culture of Performance

The CEO emphasised the need for a cultural shift within the company, one that encourages a performance-oriented mindset, doesn't tolerate losing market share, and rewards success. He further stressed the importance of making difficult but necessary decisions, including downsizing staff, to keep up with the evolving world.

According to insiders, these job cuts seem to be a strategic move to recalibrate expectations and restore faith among investors through tangible actions.

Controversy and Challenges

The previous CEO was dismissed from his position amid accusations from a whistleblower that he failed to disclose a romantic relationship with a direct report. The company's chair at the time also stepped down from his role in the same month.

It was rumored that the chair was held responsible for the company's ongoing issues. Just last year, an investigation revealed that the company's baby food products sold in low and middle-income nations contained dangerously high levels of sugar. This study, conducted by a Swiss non-profit and an international child nutrition advocacy group, found that the same products sold in affluent countries did not have any added sugar.