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Food and beverage giant Nestlé has declared it will cut 16,000 jobs within the coming 24 months, as its new CEO Philipp Navratil advances a initiative to concentrate on products offering the “highest potential returns”.

This multinational corporation needs to “adapt more quickly” to stay aligned with a dynamic global environment and embrace a “achievement-focused approach” that does not accept declining competitive position, said Mr Navratil.

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

The job cuts were disclosed on Thursday as the corporation shared stronger performance metrics for the initial three quarters of the current year, with higher product movement across its primary segments, including beverages and confectionery.

The biggest consumer packaged goods firm, Nestlé owns hundreds of labels, like Nescafé, KitKat and Maggi.

The company intends to get rid of 12,000 white collar jobs in addition to four thousand further jobs company-wide within the next two years, it stated officially.

These job cuts will save the food giant about 1bn SFr (£940m) per annum as a component of an ongoing cost-savings effort, it stated.

Its equity price rose 7.5% shortly after its performance report and restructuring news were revealed.

Mr Navratil commented: “We are cultivating a culture that adopts a results-driven attitude, that refuses to tolerate losing market share, and where winning is rewarded... Global dynamics are shifting, and we must adapt more rapidly.”

This transformation would include “hard but necessary choices to cut staff numbers,” he said.

Equity analyst a financial commentator stated the report indicated that Mr Navratil aims to “enhance clarity to areas that were formerly less clear in Nestlé's cost-saving plans.”

The workforce reductions, she said, appear to be an effort to “reset expectations and regain market faith through measurable actions.”

His forerunner was dismissed by the company in the start of last fall following a probe into reports from staff that he did not disclose a romantic relationship with a junior employee.

Its departing chairman Paul Bulcke brought forward his leaving schedule and stepped down in the corresponding timeframe.

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

The previous year, an investigation found its baby formula and foods available in emerging markets included undesirably high quantities of sugar.

The research, by a Swiss NGO and the International Baby Food Action Network, found that in several situations, the identical items marketed in affluent markets had zero additional sweeteners.

• Nestlé owns numerous brands worldwide.
• Job cuts will involve 16,000 employees during the next two years.
• Expense cuts are estimated to amount to 1bn SFr each year.
• Share price increased significantly after the update.