Nestle(US:NSRGY) Sou Hu Cai Jing·2025-10-18 06:25Core 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 performance pressures [1][3][4]. Group 1: Job Cuts and Corporate Strategy - The job cuts will affect around 12,000 white-collar positions across all functions and regions, along with about 4,000 roles in production and supply chain [1][4]. - The announcement coincides with Nestlé's third-quarter sales exceeding expectations, indicating a push for transformation under new CEO Philippe Navratil [1][3]. - Navratil emphasizes the need for Nestlé to adapt more quickly to changing market conditions, which includes making difficult decisions like layoffs [6][10]. Group 2: Financial Performance - Nestlé's total sales for the first nine months of 2023 were 65.9 billion Swiss francs, a decline of 1.9%, but organic growth was reported at 3.3% [3][4]. - The company experienced a negative impact of 5.4% from currency fluctuations, while net acquisitions contributed positively by 0.1% [3]. - The Greater China region continues to struggle, with an organic growth rate of -10.4% in Q3, contributing to overall sales declines [4]. Group 3: Leadership Changes - The recent leadership changes at Nestlé include the dismissal of former CEO Laurent Freixe and the appointment of Navratil, who is the youngest CEO in nearly 60 years [8][9]. - Navratil's management philosophy focuses on performance culture, transparency, and urgency, aiming to prevent market share loss and prioritize high-potential opportunities [9][10]. - The company aims to save 3 billion Swiss francs (approximately 3.77 billion USD) by 2027, an increase from the previous target of 2.5 billion Swiss francs [4][9].