Nestlé to axe 16,000 jobs as new chief targets sales growth

Core Viewpoint - Nestlé plans to cut 16,000 jobs over the next two years to reduce costs and increase sales, representing nearly 6% of its global workforce [1][2]. Group 1: Job Cuts and Leadership Changes - The job cuts will consist of 12,000 white-collar professionals and 4,000 in manufacturing and supply chain roles [1]. - Philipp Navratil, the new CEO, emphasizes the need for rapid change and has accelerated the cost-saving plan initiated by his predecessor [2][3]. Group 2: Financial Goals and Performance - Nestlé aims to achieve savings of SFr3 billion (£2.8 billion) by 2027, an increase from the previous target of SFr2.5 billion [3]. - The company reported a 1.9% year-on-year decline in sales to SFr65.9 billion in the first nine months, primarily due to negative foreign exchange impacts of 5.4%, while organic sales grew by 3.3% [4]. Group 3: Investment and Market Strategy - Navratil stated that the company will invest boldly and drive innovation to enhance growth and value creation [4]. - Sales growth was driven by inflationary pressures leading to price increases, particularly in coffee and confectionery, with double-digit percentage increases in some markets [5]. Group 4: Regional Performance - All regions achieved organic growth, with emerging markets expanding at 5.2% and developed markets at 2.1% [7]. Group 5: Analyst Insights - Analysts note that the new CEO is willing to take drastic actions to reverse Nestlé's current challenges, indicating a shift from traditional practices [8].