Nestlé slashing 16K jobs in massive restructuring after CEO turmoil: ‘World is changing'

Core Viewpoint - Nestle is undergoing significant restructuring, including cutting 16,000 jobs, to reduce costs and regain investor confidence amid rising pressures from US import tariffs and changing consumer habits [1][2][5]. Group 1: Job Cuts and Cost Savings - The company will cut 16,000 jobs, representing 5.8% of its workforce of approximately 277,000 employees [1]. - The cost savings target has been raised to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027 [1]. - The job cuts include 12,000 white-collar positions over the next two years and an additional 4,000 from ongoing manufacturing and supply chain initiatives [4]. Group 2: Financial Performance and Market Response - Nestle's shares rose by around 8% in early trading following the announcement of the job cuts [3]. - The company reported a 1.5% rise in real internal growth (RIG) in the third quarter, significantly above analysts' expectations of 0.3% [7]. - Organic sales growth was 4.3% in the quarter, exceeding analysts' estimates of 3.7% [13]. Group 3: Strategic Changes and Future Outlook - The new CEO, Philipp Navratil, emphasized the need for Nestle to adapt more quickly to changing market conditions [2][6]. - Ongoing strategic reviews are focused on the waters and premium beverages business, as well as low-growth vitamins and supplements brands [9]. - The company maintained its 2025 outlook, predicting an improvement in organic sales growth compared to 2024 and an underlying trading operating profit margin of at least 16% [10][13].