Nestlé has begun issuing retrenchment notices to more than 400 employees in South Africa as part of a sweeping global reorganisation that will see around 16,000 roles cut worldwide.

According to reports, at least 100 South African employees have already entered severance discussions, marking the first phase of a broader restructuring across the group’s African operations.

Further layoffs are expected in other markets, including East Africa, as the world’s largest food and beverage manufacturer reshapes its business around four core divisions.

Under new chief executive Philipp Navratil, Nestlé plans to cut approximately 6 per cent of its global workforce over the next two years.

The programme includes 12,000 white-collar roles and a further 4,000 positions across operations, with the group targeting annual savings of around 1bn Swiss francs (approximately £940m).

The company said workforce reductions would vary by country.

“Transformation plans are being developed locally, in line with each market’s business needs and structure, and in accordance with local regulations,” a Nestlé spokeswoman said, adding that final numbers would depend on ongoing consultations.

Portfolio reshuffle under way

The restructuring is accompanied by a sharper focus on higher-return categories and the divestment of non-core assets.

Nestlé has agreed to sell its remaining ice cream operations, including brands such as D’Onofrio, Real Dairy, Parlour and Lafrutta, to Froneri, its joint venture with PAI Partners.

Navratil, who replaced former CEO Laurent Freixe in September following his dismissal over a workplace relationship controversy, said the group must “change faster” to keep pace with shifting consumer demand and intensifying competition.

“We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded,” he said, describing the job cuts as “hard but necessary decisions”.

The announcement came as Nestlé reported improved sales across the first nine months of 2025, with volume growth in key categories including coffee and confectionery.

Shares rose 7.5 per cent following the update, suggesting investor support for the more aggressive cost-reset.