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Food and beverage giant Nestlé stated it will cut 16,000 positions over the next two years, as the recently appointed chief executive Philipp Navratil pushes a initiative to prioritize products offering the “greatest profit margins”.

The Swiss company needs to “change faster” to remain competitive in a changing world and implement a “results-oriented culture” that rejects ceding ground to competitors, said Mr Navratil.

His appointment followed ex-chief executive the previous leader, who was dismissed in September.

The layoff announcement were revealed on Thursday as the corporation shared better sales figures for the first three-quarters of the current year, with higher product movement across its key product lines, encompassing beverages and confectionery.

The world's largest consumer packaged goods firm, this industry leader owns a multitude of labels, among them well-known names in coffee and snacks.

Nestlé aims to eliminate 12,000 administrative positions alongside four thousand other roles throughout the organization over the coming 24 months, it announced publicly.

The lay-offs will result in savings of the corporation around 1bn SFr (£940m) annually as a component of an continuous efficiency drive, it stated.

Nestlé's share price rose seven and a half percent soon after its performance report and restructuring news were made public.

The CEO said: “We are fostering a culture that adopts a achievement-oriented approach, that will not abide competitive setbacks, and where winning is rewarded... The marketplace is evolving, and Nestlé needs to change faster.”

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

Financial expert Diana Radu said the report suggested that the new CEO seeks to “bring greater transparency to aspects that were formerly less clear in Nestlé's cost-saving plans.”

The workforce reductions, she said, appear to be an attempt to “reset expectations and regain market faith through tangible steps.”

The former CEO was terminated by Nestlé in early September after an investigation into internal complaints that he omitted to reveal a personal involvement with a immediate staff member.

The former board leader Paul Bulcke brought forward his departure date and left his post in the identical period.

Media stated at the moment that investors held accountable the former chairman for the firm's continuing challenges.

Last year, an investigation revealed its baby formula and foods available in low- and middle-income countries included undesirably high quantities of added sugars.

The study, conducted by non-profit organizations, determined that in numerous instances, the same products marketed in affluent markets had no added sugar.

• Nestlé operates numerous labels worldwide.
• Job cuts will impact sixteen thousand staff members during the next two years.
• Cost reductions are estimated to reach 1bn SFr per year.
• Stock value increased 7.5% post the update.