Nestle(US:NSRGY) Mei Ri Jing Ji Xin Wen·2025-10-16 16:48Core Viewpoint - Nestlé plans to cut approximately 16,000 jobs, equivalent to 6% of its total workforce, as part of a strategy to accelerate corporate transformation amid growth pressures, despite exceeding sales expectations in Q3 [2][3][4]. Group 1: Job Cuts and Leadership Changes - The job cuts will affect 12,000 white-collar positions and 4,000 roles in manufacturing and supply chain [3]. - The new CEO, Philippe Naefratil, emphasizes the need for faster changes within the company, stating that difficult but necessary decisions must be made [3]. - Naefratil replaced Laurent Freixe, who was dismissed after a year due to allegations of concealing a relationship with a subordinate [3]. Group 2: Financial Performance - Nestlé's total sales for the first nine months were 65.9 billion Swiss francs, a year-on-year decline of 1.9%, with an organic growth rate of 3.3% [4]. - 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 [4]. - The pricing contribution rate remained stable at 2.8%, reflecting price increases in the candy and coffee segments [4]. Group 3: Regional Performance - The Greater China region has been a significant drag on Nestlé's performance, with an organic growth rate of -10.4% in Q3, continuing a downward trend [6]. - Excluding Greater China, the organic growth rate for the Asia, Oceania, and Africa region was 5.3%, indicating stronger performance in other markets [6]. - Nestlé is working to reduce excess inventory in Greater China and refocus its organizational efforts on demand creation [7]. Group 4: Market Reaction - Following the announcement of the better-than-expected financial results and job cuts, Nestlé's ADR rose by over 9% [9].