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Food and beverage giant Nestlé announced it will eliminate 16,000 positions over the next two years, as the recently appointed chief executive the company's fresh leader drives a strategy to focus on products offering the “most lucrative outcomes”.

This multinational corporation needs to “evolve at a quicker pace” to remain competitive in a evolving marketplace and implement a “results-oriented culture” that does not accept ceding ground to competitors, the executive stated.

His appointment followed former CEO Laurent Freixe, who was terminated in September.

The job cuts were revealed on Thursday as the corporation announced better performance metrics for the initial three quarters of the current year, with increased revenue across its major categories, such as hot drinks and snacks.

The world's largest consumer packaged goods company, Nestlé manages hundreds of product lines, including its coffee, chocolate, and food brands.

The company plans to remove twelve thousand white collar roles on top of four thousand other roles company-wide over the coming 24 months, it said in a statement.

These job cuts will save the consumer goods leader around 1bn SFr (£940m) each year as a component of an continuous efficiency drive, it confirmed.

The company's stock value increased by more than seven percent shortly after its quarterly update and job cuts were revealed.

The CEO stated: “We are cultivating a organizational ethos that welcomes a performance mindset, that will not abide losing market share, and where success is recognized... Global dynamics are shifting, and Nestlé needs to change faster.”

Such change would include “difficult yet essential actions to reduce headcount,” he noted.

Market analyst an industry specialist remarked the report suggested that Nestlé's leader wants to “increase openness to aspects that were formerly less clear in the company's efficiency strategy.”

These layoffs, she noted, seem to be an effort to “reset expectations and restore shareholder trust through tangible steps.”

The former CEO was terminated by the company in the start of last fall subsequent to an inquiry into reports from staff that he failed to report a private liaison with a junior employee.

The former board leader Paul Bulcke brought forward his exit timeline and resigned in the same month.

It was reported at the moment that shareholders held accountable the outgoing leader for the firm's continuing challenges.

In the prior year, an investigation found infant nutrition items from the company available in emerging markets had excessive amounts of added sugars.

The analysis, carried out by advocacy groups, found that in numerous instances, the same products sold in wealthy countries had zero additional sweeteners.

• The corporation manages hundreds of brands internationally.
• Workforce reductions will impact sixteen thousand employees during the coming 24 months.
• Expense cuts are projected to reach one billion Swiss francs annually.
• Share price climbed 7.5% following the news.