Nestlé SA’s new chief executive officer announced plans to slash 16,000 jobs only weeks after taking over, aiming to build on a stronger-than-expected increase in quarterly sales that lifted the Swiss foodmaker’s shares by the most in 17 years.

Philipp Navratil, who took over after Laurent Freixe was ousted for hiding a relationship with a subordinate, increased Nestlé’s target for cost savings to 3 billion Swiss francs ($3.7 billion) by the end of 2027, from 2.5 billion francs. The moves indicate the new CEO is sticking with his predecessor’s broader strategy, which included reviews and possible sales of underperforming units.

“The world is changing, and Nestlé needs to change faster,” Navratil said Thursday. “This will include making hard but necessary decisions to reduce headcount.”

See Full Page