**Nestle India Sees Employee Reduction Amid Increased Investment Plans**
Nestle India has reported a 3.8% decline in its total number of permanent employees for the financial year ending 2024-25, as the company gears up to enhance its capital expenditure (capex) to invest in new capabilities and capacities. According to a report from PTI on June 3, 2025, the company’s workforce decreased from 8,736 employees in the previous fiscal year to 8,419.
Despite the reduction in staff, Nestle India has increased its median employee remuneration by 4.9% during the same fiscal year. The report indicates that non-managerial personnel received a median salary increase of 5.2%, while managerial personnel saw a 3.5% rise in their remuneration.
In a significant leadership change, Manish Tiwary has been appointed as the managing director for a five-year term starting August 1, 2025. Following his appointment as a key managerial personnel on April 24, 2025, Tiwary received a salary of nearly ₹3 crore for two months of service. His total remuneration for the financial year 2024-25 amounted to ₹29.94 million, along with a one-time payout of ₹151.96 million to compensate for the loss of long-term incentives.
Nestle India, a leading player in the fast-moving consumer goods (FMCG) sector, is known for its popular products such as Maggi, Nescafe coffee, Everyday milk powder, and KitKat. The outgoing Chairman, Suresh Narayanan, addressed shareholders, revealing that the company achieved over ₹20,000 crore in sales for the financial year ending 2025, with capex rising from 1.8% of sales in FY2015 to 10% in FY2025. The total income for the fiscal year 2024-25 was reported at ₹20,260.42 crore.
Narayanan emphasized that the company is investing in new capabilities and capacities, including expanding product lines in existing factories and establishing a new facility in Sanand, Gujarat, focused on confectionery, prepared dishes, and cooking aids. For the financial year 2024-25, Narayanan’s compensation was reported at ₹23.47 crore.
On the stock market, Nestle India shares closed down 0.73% at ₹2,390.65, compared to ₹2,408.20 from the previous market close.
**FAQ**
*What is the reason behind Nestle India’s reduction in permanent employees?*
Nestle India’s reduction in permanent employees is part of a strategic plan to increase capital expenditure for investing in new capabilities and capacities, despite a rise in median employee remuneration.
