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Food and beverage giant Nestlé announced it will cut 16,000 roles over the next two years, as the recently appointed chief executive the company's fresh leader pushes a plan to prioritize products offering the “most lucrative outcomes”.

The Swiss company needs to “evolve at a quicker pace” to remain competitive in a evolving marketplace and implement a “results-oriented culture” that refuses to tolerate losing market share, according to the CEO.

He replaced ex-chief executive Laurent Freixe, who was terminated in the ninth month.

The job cuts were made public on Thursday as the corporation shared stronger sales figures for the first three-quarters of the current year, with increased product movement across its key product lines, encompassing beverages and confectionery.

The biggest packaged food and drink corporation, this industry leader owns hundreds of brands, including well-known names in coffee and snacks.

The company aims to eliminate twelve thousand administrative jobs alongside 4,000 further jobs company-wide over the coming 24 months, it said in a statement.

The lay-offs will result in savings of the consumer goods leader around CHF 1 billion each year as a component of an continuous efficiency drive, it stated.

The company's stock value rose 7.5% soon after its quarterly update and layoff announcement were revealed.

Nestlé's leader said: “We are building a corporate environment that welcomes a performance mindset, that will not abide competitive setbacks, and where achievement is incentivized... Global dynamics are shifting, and Nestlé needs to change faster.”

Such change would encompass “tough but required actions to cut staff numbers,” he noted.

Financial expert a financial commentator remarked the announcement indicated that the new CEO seeks to “bring greater transparency to sectors that were once ambiguous in its expense reduction initiatives.”

The job cuts, she explained, seem to be an effort to “reset expectations and rebuild investor confidence through concrete measures.”

The former CEO was dismissed by Nestlé in early September following a probe into whistleblower allegations that he failed to report a romantic relationship with a immediate staff member.

The former board leader Paul Bulcke accelerated his departure date and stepped down in the identical period.

Sources indicated at the time that stakeholders attributed responsibility to the outgoing leader for the company's ongoing problems.

Last year, an inquiry found infant nutrition items from the company sold in low- and middle-income countries had undesirably high quantities of sugar.

The study, carried out by advocacy groups, established that in numerous instances, the same products available in wealthy countries had no extra sugars.

• The corporation manages numerous brands worldwide.
• Workforce reductions will affect sixteen thousand staff members during the next two years.
• Expense cuts are projected to total CHF 1 billion annually.
• Stock value climbed 7.5% post the announcement.