Nestle (NSRGY) Axes 16,000 Positions While Revenue Climbs - Corporate Paradox Exposed
Swiss food giant Nestle slashes workforce by 16,000 despite posting positive sales growth—efficiency play or corporate cannibalism?
The Great Contradiction
While revenue charts point upward, Nestle's HR department works in reverse. The company eliminates 16,000 roles worldwide, proving that in modern capitalism, profitability and employment exist in inverse proportion.
Numbers Don't Lie, But CEOs Do
Sales growth figures paint a rosy picture, yet 16,000 employees receive walking papers. Somewhere in Switzerland, a boardroom celebrates 'optimization' while thousands of families face uncertainty—the ultimate corporate magic trick.
Wall Street's Bittersweet Chocolate
Investors cheer the cost-cutting measures, conveniently ignoring that sustainable growth requires both consumer demand and employed consumers. Another masterclass in short-term thinking from the folks who brought you bottled water as a premium product.
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Stating his commitment to improving sales further, Philipp Navratil, the company’s CEO, confirmed the company’s full-year guidance. Along with that, the company announced a planned reduction in headcount of 16,000 employees over the next two years. That includes 12,000 white-collar workers, which will bring a billion CHF of annual savings. In addition, 4,000 employees in Nestle’s manufacturing and supply chain divisions will be laid off. The job cuts will occur across geographies and job functions, according to Anna Manz, the CFO.
Is Nestle Performing Well?
Year-to-date, Nestle stock has risen 19.1%. Additionally, NSRGY has paid a dividend to investors for at least 25 years, and has stated its commitment to continue doing so.
