Zurich: Swiss food and drink giant Nestle is in talks to sell its ice cream business as it prioritizes efficiency under a comprehensive strategic transformation plan, according to its fourth-quarter results on Thursday.

According to Anadolu Agency, Philipp Navratil, the CEO who took over in September 2025, has been pursuing a strict cost management program since taking office. Navratil emphasized that coffee, pet products, nutrition and health products, and food and snacks are Nestle’s main focuses. The company is in advanced discussions to sell off the remaining assets of its ice cream business to UK-based Froneri.

A planned layoff of 16,000 workers over the next two years forms part of this strategic shift, representing 6% of the firm’s total workforce of approximately 280,000. The layoff is expected to save the company 1 billion Swiss francs ($1.3 billion) annually by the end of 2027, with 20% of these savings already realized.

Nestle’s sales declined 2% year-on-year in 2025 to $116 billion, falling short of estimates. The company’s net profit decreased by 17% to $11.6 billion. However, its organic sales, which exclude currency influence and acquisitions, grew by 3.5% over the same period, slightly above the estimated 3.38% growth.