Nestle(US:NSRGY) Mei Ri Jing Ji Xin Wen·2025-10-16 16:40Core Viewpoint - Nestlé plans to cut approximately 16,000 jobs, representing 6% of its total workforce, as part of a strategy to accelerate corporate transformation amid growth pressures, despite exceeding sales expectations in Q3 [1][2][4]. Group 1: Job Cuts and Corporate Strategy - The job cuts will affect 12,000 white-collar positions and 4,000 roles in manufacturing and supply chain [2]. - New CEO Philippe Naefratil emphasizes the need for Nestlé to adapt more quickly to changing market conditions, stating that difficult but necessary decisions must be made [2][4]. - Nestlé has raised its cost-saving target to 3 billion Swiss francs (approximately 3.77 billion USD) by the end of 2027, up from the previous target of 2.5 billion Swiss francs (approximately 3.14 billion USD) [4]. Group 2: Financial Performance - For the first nine months of the year, Nestlé reported total sales of 65.9 billion Swiss francs, a year-on-year decline of 1.9%, with an organic growth rate of 3.3% [6]. - In Q3, the organic growth rate improved to 4.3%, up from 2.9% in the first half of the year, with all major product categories showing improvement [6]. - The coffee and confectionery segments were the main contributors to organic growth, driven primarily by pricing strategies [6]. Group 3: Regional Performance - The Greater China region has been a drag on Nestlé's performance, with an organic growth rate of -10.4% in Q3, continuing a downward trend [9]. - Excluding Greater China, the organic growth rate for the Asia, Oceania, and Africa region was 5.3%, indicating stronger performance in other markets [9]. - Nestlé is working to reduce excess inventory in Greater China and refocus its organizational efforts on demand creation [9]. Group 4: Market Reaction - Following the announcement of the job cuts and better-than-expected financial results, Nestlé's ADR saw an increase of over 9% [12].