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Food and beverage giant Nestlé stated it will eliminate sixteen thousand positions during the upcoming biennium, as its new CEO Philipp Navratil pushes a strategy to focus on products offering the “greatest profit margins”.

The Swiss company needs to “evolve at a quicker pace” to keep pace with a changing world and embrace a “achievement-focused approach” that refuses to tolerate declining competitive position, said Mr Navratil.

He took over from ex-chief executive the previous leader, who was dismissed in September.

The job cuts were revealed on the fourth weekday as Nestlé shared improved sales figures for the first three-quarters of the current year, with increased product movement across its primary segments, including hot drinks and snacks.

The world's largest consumer packaged goods firm, this industry leader owns numerous labels, among them its coffee, chocolate, and food brands.

Nestlé intends to get rid of 12,000 white collar jobs in addition to 4,000 other roles company-wide over the coming 24 months, it announced publicly.

The workforce reduction will cut costs by the food giant around 1bn SFr (£940m) annually as a component of an continuous efficiency drive, it said.

The company's stock value was up by more than seven percent following its performance report and restructuring news were made public.

Nestlé's leader said: “We are fostering a corporate environment that adopts a performance mindset, that will not abide competitive setbacks, and where achievement is incentivized... Global dynamics are shifting, and we must adapt more rapidly.”

This transformation would encompass “tough but required actions to cut staff numbers,” he added.

Market analyst Diana Radu said the announcement indicated that Mr Navratil aims to “bring greater transparency to aspects that were previously more opaque in Nestlé's cost-saving plans.”

The job cuts, she noted, seem to be an attempt to “adjust outlooks and rebuild investor confidence through measurable actions.”

His forerunner was dismissed by the company in the start of last fall after an investigation into whistleblower allegations that he omitted to reveal a romantic relationship with a junior employee.

Its departing chairman Paul Bulcke accelerated his leaving schedule and stepped down in the same month.

It was reported at the moment that shareholders held accountable the former chairman for the corporation's persistent issues.

The previous year, an inquiry found its baby formula and foods sold in emerging markets had undesirably high quantities of added sugars.

The research, conducted by non-profit organizations, found that in numerous instances, the identical items sold in wealthy countries had no added sugar.

• Nestlé owns a wide array of brands internationally.
• Layoffs will involve sixteen thousand staff members during the next two years.
• Savings are estimated to amount to 1bn SFr per year.
• Share price increased significantly following the news.