"Philipp Navratil, who took over after Laurent Freixe was ousted for hiding a relationship with a subordinate, increased Nestlé's target for cost savings to 3 billion Swiss francs ($3.7 billion) by the end of 2027, from 2.5 billion francs. The moves indicate the new CEO is sticking with his predecessor's broader strategy, which included reviews and possible sales of underperforming units."
"The job reductions, amounting to about 6% of the workforce, will occur over the next two years, the maker of Nespresso coffee capsules and KitKat candy bars said Thursday. The jobs announcement came alongside a 4.3% rise in third-quarter sales, driven by higher prices and improved real internal growth - a key measure of volumes closely watched by analysts and investors."
"Nestlé tapped Navratil as CEO last month after ousting Freixe a year into his tenure. In the wake of the scandal, Chairman Paul Bulcke stepped down earlier than scheduled, replaced by former Inditex SA CEO Pablo Isla. The shuffle created turmoil at the top of a company known for its staid corporate culture, and left the new leadership duo with the task of presenting a plan to revive volume growth and tackle governance issues."
Philipp Navratil will cut about 16,000 jobs, roughly 6% of Nestlé's workforce, over the next two years and raised the cost-savings target to 3 billion Swiss francs by end-2027, up from 2.5 billion. Third-quarter sales rose 4.3% driven by higher prices and improved real internal growth. Shares jumped as much as 8.2%, the biggest gain since 2008. Navratil succeeds Laurent Freixe, who was ousted for hiding a relationship with a subordinate, and follows early departure of Chairman Paul Bulcke, replaced by Pablo Isla. Leadership plans include reviews and possible sales of underperforming units to revive volume growth and address governance.
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