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Food and beverage giant Nestlé announced it will remove 16,000 positions over the next two years, as its new CEO Philipp Navratil pushes a strategy to focus on products offering the “highest potential returns”.

The Swiss company has to “adapt more quickly” to remain competitive in a dynamic global environment and implement a “performance mindset” that rejects declining competitive position, according to the CEO.

His appointment followed former CEO the previous leader, who was let go in September.

The job cuts were made public on the fourth weekday as Nestlé shared stronger revenue numbers for the first three-quarters of the current year, with expanded sales across its primary segments, encompassing beverages and confectionery.

The world's largest food & beverage firm, this industry leader operates hundreds of brands, among them well-known names in coffee and snacks.

Nestlé aims to get rid of twelve thousand white collar positions on top of 4,000 other roles across the board over the coming 24 months, it said in a statement.

The workforce reduction will result in savings of the corporation approximately 1bn SFr (£940m) annually as a component of an ongoing cost-savings effort, it said.

The company's stock value rose 7.5% shortly after its trading update and job cuts were revealed.

The CEO commented: “We are cultivating a corporate environment that welcomes a results-driven attitude, 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 “hard but necessary choices to cut staff numbers,” he said.

Equity analyst Diana Radu stated the update signalled that Mr Navratil aims to “increase openness to sectors that were previously more opaque in its expense reduction initiatives.”

The workforce reductions, she said, seem to be an attempt to “adjust outlooks and restore shareholder trust through measurable actions.”

Mr Navratil's predecessor was terminated by Nestlé in the beginning of the ninth month subsequent to an inquiry into internal complaints that he did not disclose a personal involvement with a direct subordinate.

Its departing chairman the ex-chairman moved up his departure date and left his post in the corresponding timeframe.

Media stated at the period that stakeholders held accountable Mr Bulcke for the firm's continuing challenges.

In the prior year, an investigation revealed Nestlé baby food products available in low- and middle-income countries included undesirably high quantities of sugar.

The study, carried out by advocacy groups, found that in many cases, the identical items sold in developed nations had zero additional sweeteners.

• Nestlé operates numerous labels worldwide.
• Job cuts will impact sixteen thousand workers during the next two years.
• Expense cuts are projected to reach CHF 1 billion annually.
• Stock value increased 7.5% post the news.