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Global consumer goods leader Nestlé announced it will eliminate 16,000 roles during the upcoming biennium, as its new CEO Philipp Navratil advances a initiative to focus on products offering the “highest potential returns”.

The Swiss company needs to “adapt more quickly” to stay aligned with a dynamic global environment and adopt a “results-oriented culture” that refuses to tolerate declining competitive position, the executive stated.

He replaced ex-chief executive the previous leader, who was terminated in September.

The layoff announcement were disclosed on Thursday as the corporation reported stronger performance metrics for the first three-quarters of the current year, with higher revenue across its key product lines, encompassing beverages and confectionery.

The world's largest consumer packaged goods company, this industry leader operates numerous labels, among them Nescafé, KitKat and Maggi.

Nestlé plans to eliminate 12,000 administrative jobs on top of four thousand further jobs across the board during the next biennium, it said in a statement.

The workforce reduction will save the food giant approximately 1bn SFr (£940m) per annum as part of an continuous efficiency drive, it said.

Its equity price increased 7.5% soon after its trading update and restructuring news were revealed.

The CEO stated: “We are building a organizational ethos that embraces a results-driven attitude, that will not abide losing market share, and where achievement is incentivized... The marketplace is evolving, and we must adapt more rapidly.”

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

Equity analyst Diana Radu remarked the update suggested that the new CEO aims to “increase openness to areas that were once ambiguous in Nestlé's cost-saving plans.”

These layoffs, she noted, appear to be an attempt to “recalibrate projections and regain market faith through tangible steps.”

Mr Navratil's predecessor was terminated by Nestlé in early September after an investigation into whistleblower allegations that he failed to report a romantic relationship with a immediate staff member.

The former board leader Paul Bulcke moved up his departure date and left his post in the corresponding timeframe.

Sources indicated at the period that shareholders attributed responsibility to the former chairman for the company's ongoing problems.

Last year, an study revealed its baby formula and foods marketed in developing nations contained undesirably high quantities of sugar.

The analysis, conducted by non-profit organizations, found that in many cases, the same products marketed in affluent markets had no extra sugars.

• Nestlé operates numerous labels worldwide.
• Workforce reductions will involve 16,000 employees during the coming 24 months.
• Savings are projected to amount to CHF 1 billion each year.
• Share price increased seven and a half percent post the update.