Nestlé Q3 sales exceed expectations, plans to lay off 16,000 employees, stock price sees biggest surge since 2008 | Earnings Report News

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Nestlé’s performance has rebounded, with growth surpassing analysts’ expectations and its stock price once rising over 8%, marking the largest increase since 2008. Meanwhile, the company announced a large-scale personnel overhaul, planning to lay off 16,000 employees.

On Thursday, Nestlé announced its financial results showing a 4.3% organic sales growth in the third quarter, above analysts’ expectations of 3.7%. In the first nine months of 2025, the company’s sales reached 65.87 billion Swiss francs, with organic growth accelerating to 3.3%, slightly higher than analysts’ forecast of 3.2%. This growth was mainly driven by price increases in coffee and confectionery categories, with most categories seeing positive organic growth.

Regarding guidance, Nestlé maintained its outlook for 2025, expecting organic sales growth to improve over 2024, and the core trading operating profit margin to reach or exceed 16% in 2025.

Notably, the company announced it will cut 16,000 jobs in the next two years, about 6% of its total workforce. The food giant is seeking to revive its performance and restore investor confidence through massive restructuring. At the same time, the company raised its cost-saving target by the end of 2027 from 2.5 billion to 3 billion Swiss francs.

Newly appointed CEO Philipp Navratil stated in a statement,

"The world is changing, and Nestlé needs to change faster. This will include making difficult but necessary decisions to reduce headcount."

Performance rebound combined with organizational changes boosted market confidence, and Nestlé’s stock surged 8.2% on Thursday morning at the Swiss exchange, marking the largest single-day increase since 2008.

Improved Growth, New CEO Still Faces Challenges

The key to third-quarter sales growth lies in the improvement of real internal growth, which has long been a focal point for analysts and investors. Vontobel analyst Jean-Philippe Bertschy said:

"Though still very fragile, we believe this set of results will help Nestlé partially restore investor trust."

Previously, Nestlé faced management turmoil, with new leadership tasked to revive sales growth and solve governance issues. Last month, Nestlé appointed Navratil as CEO, after his predecessor Laurent Freixe was dismissed following alleged concealment of a relationship with a subordinate after just one year in office.

Navratil has been at Nestlé for over 20 years, most recently heading the Nespresso business. He said he will carry on Freixe’s strategies, including increased advertising spend, focusing on fewer, bigger product platforms, and divesting underperforming business units.

In a conference call with reporters on Thursday, Navratil pointed out that further increasing real internal growth is Nestlé’s top priority, and the company is evaluating all its businesses. His predecessor had already begun a restructuring plan, including a possible sale of the troubled vitamins brand, as well as seeking partners for the Nestlé bottled water business.

Navratil told the media that any job losses resulting from asset divestitures will not be counted toward the planned 16,000 layoffs.

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