Core Viewpoint - Nestlé's new CEO, Philipp Navratil, has announced a plan to cut 16,000 jobs over the next two years to adapt to changing market conditions and drive growth [1][2] Group 1: Job Cuts and Financial Impact - The job reductions will consist of 12,000 white-collar positions and 4,000 in manufacturing and supply chain [1] - The cuts are expected to generate annual savings of SFr1 billion ($1.3 billion) by the end of 2027, an increase from the previous target of SFr500 million [3] - However, the job cuts will incur one-off costs estimated at "two times annual savings" [4] Group 2: Growth Strategy and Performance Metrics - The primary focus of the new strategy is to drive improvements in real internal growth (RIG), which excludes pricing effects [3] - Nestlé reported a nine-month RIG result of 0.6% with a pricing component of 2.8%, while organic growth was 3.3% and reported sales fell 1.9% to SFr65.9 billion [5] - The CEO emphasized the need for rigorous resource allocation and prioritizing high-potential growth opportunities [6] Group 3: Innovation and Market Position - Navratil indicated plans to address market-share losses and emphasized innovation as a key driver for growth [6] - The company aims to foster a performance-oriented culture that does not accept losing market share [6] - Previous guidance remains unchanged, with expectations for improved organic growth in 2024 and an underlying trading operating profit (UTOP) margin of "at or above 16%" [6]