Core Viewpoint - Nestlé announced a significant restructuring plan, aiming to cut nearly 6% of its workforce, equating to 16,000 jobs globally, to save 1 billion Swiss francs annually by 2027, raising its total cost-saving target to 3 billion Swiss francs [1][30]. Financial Performance - In the first nine months of the year, Nestlé reported sales of 65.87 billion Swiss francs, with an actual growth rate of only 0.6% [1]. - The organic growth rate for the third quarter reached 4.3%, largely due to a low base from the previous year, indicating structural issues in growth quality [13][14]. Market Challenges - Sales in China, Nestlé's second-largest market, declined by 6.4%, prompting a reorganization of the Greater China region into the Asia division [1]. - The company faces a dual challenge in China, where consumers are increasingly divided into two categories: those seeking value for money and those desiring premium products [15][16][18]. Leadership Changes - The sudden appointment of a new CEO, Philippe Naouri, and the early departure of the board chairman, Paul Bulcke, indicate internal governance concerns and a need for decisive action [2][3][4]. Strategic Shift - The restructuring plan reflects a shift towards a more agile and data-driven organizational structure, aiming to reduce internal management costs and enhance market responsiveness [39][40]. - Nestlé's strategy includes a thorough review of its business segments, focusing on divesting underperforming assets while investing in high-potential areas like Nespresso and PetCare [45][49]. Consumer Behavior - The current inflationary environment has led to a reliance on price increases for revenue growth, raising concerns about the sustainability of this model as consumer price sensitivity increases [12][14]. - The shift in consumer purchasing habits towards e-commerce and social media platforms necessitates a complete overhaul of Nestlé's marketing and distribution strategies [21][22][24].