European consumer goods giant Nestle (NESN) has announced plans to cut 16,000 jobs as it looks to accelerate a multi-year turnaround strategy.
In a news release, the Swiss-based company said that the job cuts are aimed at improving operational efficiencies.
In all, Nestle plans to eliminate 12,000 white-collar jobs and 4,000 additional roles will be cut over the next two years. Shares of Nestle jumped 9% higher on news of the job cuts.
Nestle had previously announced a cost-savings program worth 2.5 billion Swiss francs ($3.14 billion U.S.). The company said this has now been accelerated to 3 billion Swiss francs by the end of 2027.
The consumer goods company has been under pressure from investors to boost its stock performance, which has declined more than 40% since the end of 2021 and fallen 9% over the last 12 months.
Nestle has struggled with poor sales in the key market of China and as consumers move away from packaged goods in favor of more natural and organic food choices.
Well-known Nestle products and brands include Gerber baby food, PowerBar, Hot Pockets, Carnation hot chocolate, and Purina dog food.
