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Global consumer goods leader Nestlé announced it will cut 16,000 positions during the upcoming biennium, as its new CEO the company's fresh leader pushes a initiative to prioritize products offering the “highest potential returns”.

The Swiss company needs to “evolve at a quicker pace” to stay aligned with a dynamic global environment and implement a “performance mindset” that does not accept declining competitive position, according to the CEO.

He replaced ex-chief executive the previous leader, who was dismissed in last fall.

The job cuts were made public on the fourth weekday as the corporation shared improved sales figures for the first three-quarters of the current year, with higher revenue across its key product lines, including coffee and sweets.

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

The company plans to eliminate 12,000 professional roles in addition to 4,000 further jobs across the board over the coming 24 months, it said in a statement.

The workforce reduction will save the food giant around 1bn SFr (£940m) per annum as within an sustained expense reduction program, it confirmed.

The company's stock value increased by more than seven percent soon after its trading update and job cuts were announced.

Nestlé's leader said: “We are cultivating a culture that embraces a results-driven attitude, that will not abide losing market share, and where success is recognized... Global dynamics are shifting, and Nestlé needs to change faster.”

This transformation would encompass “tough but required decisions to trim the workforce,” he said.

Equity analyst Diana Radu said the update indicated that the new CEO wants to “enhance clarity to areas that were once ambiguous in the company's efficiency strategy.”

The workforce reductions, she noted, appear to be an attempt to “adjust outlooks and regain market faith through tangible steps.”

The former CEO was sacked by Nestlé in the start of last fall subsequent to an inquiry into whistleblower allegations that he failed to report a private liaison with a immediate staff member.

The former board leader the ex-chairman moved up his departure date and resigned in the same month.

Sources indicated at the time that investors blamed the outgoing leader for the company's ongoing problems.

Last year, an inquiry discovered Nestlé baby food products sold in developing nations included unhealthily high levels of sweeteners.

The study, conducted by non-profit organizations, established that in numerous instances, the identical items available in wealthy countries had no added sugar.

• Nestlé manages numerous brands worldwide.
• Workforce reductions will involve sixteen thousand workers during the upcoming biennium.
• Cost reductions are projected to amount to CHF 1 billion per year.
• Share price increased significantly post the news.