Nestle, the Swiss food giant whose brands include Toll House cookies, Nespresso coffee, Gerber baby products and Perrier water, will eliminate 16,000 jobs worldwide over the next two years, its new chief executive said on Thursday.

"The world is changing, and Nestle needs to change faster," Philipp Navratil, who took the reins of the multinational in early September, said in a statement.

That included making "hard but necessary decisions to reduce headcount," he said.

Shares in Nestle surged after the announcement by more than 8%, to 82.30 Swiss francs ($103.28) in late morning deals.

Navratil spoke as the company published nine-month figures showing sales down by 1.9% percent to 65.9 billion Swiss francs ($83 billion).

The layoffs include 12,000 white-collar jobs, saving the company one billion Swiss francs ($1.25 billion) -- which it said was double what had been previously planned -- on top of 4,000 job cuts already underway in production and the supply chain.

Navratil said Nestle was increasing its savings target to three billion Swiss francs ($3.75 billion) by the end of 2027, up from the previous target of 2.5 billion.

The food giant, which owns more than 2,000 brands -- including Kit Kat chocolate bars and Purina dog food -- experienced a turbulent September with the dismissal of its previous CEO over an office relationship.

That was followed by the earlier-than-expected departure of its chairman.

Financial analysts say Navratil is seeking to restore stability to the group, which has seen its growth falter since 2022. Nestle has also been rocked by a scandal surrounding its bottled water that began in France in 2024.

Organic sales growth amounted to 3.3% in the first nine months of 2025, driven by price increases of 2.8%.

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