Nestlé announced plans to eliminate 16,000 positions, representing roughly 6 per cent of its workforce, as incoming CEO Philipp Navratil aims to speed up the company’s turnaround.

The job cuts, affecting the maker of Nespresso coffee capsules and KitKat bars, are expected to take place over the next two years, according to Bloomberg.

“The world is changing, and Nestlé needs to change faster,” Navratil said in a statement Thursday.

“This will include making hard but necessary decisions to reduce headcount over the next two years.”

Nestlé also increased its cost-saving target to 3 billion Swiss francs (€3.2 billion/$3.7 billion) by the end of 2027, up from the previous goal of 2.5 billion francs. The move follows stronger-than-expected third-quarter sales, driven by higher prices and increased volumes.

Nestlé appointed longtime company executive Philipp Navratil as CEO last month, following the ousting of his predecessor, Laurent Freixe, who had served just a year amid allegations of concealing a romantic relationship with a subordinate.

The shake-up also prompted Chairman Paul Bulcke to step down ahead of schedule, with former Inditex SA CEO Pablo Isla taking his place.

The leadership changes disrupted the traditionally stable Nestlé management structure and left the new team with the challenge of reviving volume growth and addressing governance concerns.

While Navratil, a Nestlé veteran of over 20 years who most recently headed the Nespresso division, has signaled he will continue Freixe’s strategic approach, investors will be watching closely for any indications of new initiatives.