Nestle(US:NSRGY) Mei Ri Jing Ji Xin Wen·2025-10-17 02:55Core Viewpoint - Nestlé plans to cut approximately 16,000 jobs, representing 6% of its total workforce, despite exceeding sales expectations in Q3 [1][3] 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 [1] - New CEO Philippe Naefratil emphasizes the need for faster transformation within the company, stating, "The world is changing, and Nestlé must change faster" [1][3] - Naefratil was appointed following the dismissal of former CEO Laurent Freyks due to personal misconduct [3] Group 2: Financial Performance - Nestlé's total sales for the first nine months of the year reached 65.9 billion Swiss francs, a year-on-year decline of 1.9% [5] - The organic growth rate was 3.3%, with all regions and global direct operations showing positive growth [5] - In Q3, the organic growth rate improved to 4.3%, up from 2.9% in the first half of the year [5] Group 3: Regional Performance - The Greater China region has been a drag on performance, with a Q3 organic growth rate of -10.4% [8] - Excluding Greater China, the organic growth rate for Asia, Oceania, and Africa was 5.3% [8] - Nestlé is focusing on reducing excess inventory in Greater China and shifting its organizational focus towards demand creation [8] Group 4: Cost-Saving Initiatives - 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) [3] - The company aims to implement necessary but difficult decisions to achieve these savings [3] Group 5: Market Reaction - Following the announcement of job cuts and better-than-expected financial results, Nestlé's ADR rose over 9% [11]