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By Alexander Marrow (Reuters) – Nestle will cut 16,000 jobs, new CEO Philipp Navratil said on Thursday, as the world's largest packaged food company seeks to cut costs and win back investor confidence. The jobs represent 5.8% of Nestle's around 277,000 employees. Navratil said Nestle had raised its costs savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027. "The world is changing, and Nestlé needs to change faster," Navratil said. UNPRECEDENTED MANAGEMENT TURMOIL Nestle, whose shares were up 7.5% by 0815 GMT, has experienced an unprecedented period of managerial turmoil, with Navratil replacing Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report. Chairman Paul Bulcke then stepped down early to make way for former Inditex chief Pablo Isla two weeks later. Navratil said the 12,000 white collar job cuts over the next two years, in addition to a further 4,000 headcount reduction as part of ongoing initiatives in manufacturing and the supply chain, were part of an efficiency push. 'FUEL TO THE TURNAROUND FIRE' The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reverse stalling sales growth and arrest a share price slide as costs have risen and debt levels have climbed, increasing pressure from investors. Nestle's quarterly results "add fuel to the turnaround fire," Bernstein analysts wrote in a note, naming the headcount reduction as a "significant surprise". A 1.5% rise in real internal growth – a measure of sales volumes – in the third quarter, well above analysts' expectations of a 0.3% rise, may offer Navratil breathing space as he looks to make his mark following his sudden promotion. Navratil said driving RIG-led growth was Nestle's highest priority. "We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded," Navratil said. Strategic reviews of Nestle's waters and premium beverages business and low-growth, low-margin vitamins and supplements brands are ongoing, the company said. The Swiss company maintained its 2025 outlook. It said organic sales growth should improve compared to 2024 and predicted underlying trading operating profit margin at, or above, 16%. Organic sales, which exclude the impact of currency movement and acquisitions, rose 4.3% in the quarter, Nestle said, above analysts' estimates for 3.7% growth. Quarterly sales growth was driven by pricing-led upticks in coffee and confectionary, but Greater China was a drag. CFO Anna Manz said Nestle had been too focused on driving distribution across China and not enough on building consumer demand. "So what you see in China is us correcting that and actually to consolidate our distribution and make it more efficient, while we build this consumer demand." ($1 = 0.7955 Swiss francs) (Reporting by Alexander Marrow; Editing by Dave Graham, Lisa Jucca and Barbara Lewis)

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TAIPEI (Reuters) -TSMC, the world's biggest producer of advanced AI chips, forecast fourth-quarter revenue up by as much as 24% as it rides an AI boom that saw it post its sixth consecutive quarter of double-digit profit growth, beating estimates. TSMC said it expects robust artificial intelligence demand to continue and maintained its forecast for capital spending at up to $42 billion for 2025, although it flagged a potential business impact from U.S. trade tariffs and currency moves. The Taiwan company, whose customers include Nvidia and Apple, posted a 39.1% jump in third-quarter net profit and said it would be prudent in its business planning going into 2026. Benefiting from surging demand for advanced chips used in AI applications, Taiwan Semiconductor Manufacturing Co said net profit for July-September climbed to T$452.3 billion ($14.76 billion). That was well ahead of a T$417.7 billion LSEG SmartEstimate drawn from 20 analysts. SmartEstimates are weighted toward forecasts from analysts who are more consistently accurate. TSMC said it believes the AI boom is strengthening and demand is stronger than what it had anticipated three months ago as it forecast next year to remain healthy due to robust demand for AI-related products. Trump's trade policies and threats to put tariffs on semiconductors have created uncertainty for the global chip industry and TSMC. TSMC announced plans for a $100 billion U.S. investment with Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. On Wednesday, top semiconductor equipment maker ASML, for which TSMC is a major customer, said third-quarter bookings beat market forecasts but that it expected a significant fall in demand from China next year. Samsung Electronics said on Tuesday it expected its biggest quarterly profit in over three years, also thanks to the AI boom. Taiwan-listed shares in TSMC have risen 38% so far this year, largely brushing off concerns about tariffs, and ahead of the 20% rise for the broader market. ($1 = 30.6450 Taiwan dollars) (Reporting by Wen-Yee Lee, Faith Hung and Ben Blanchard; Editing by Christopher Cushing and Muralikumar Anantharaman)

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(Corrects spelling of banquets in paragraph 11) By Christine Chen SYDNEY (Reuters) -Treasury Wine Estates shareholders grilled Chairman John Mullen over the Australian winemaker's poor performance, stock slump as well as his heavy workload, but he was re-elected by a wide margin at its annual general meeting on Thursday. Earlier this week, Treasury – one of the world's top five winemakers by volume – pulled earnings guidance for 2026 and suspended plans for a share buyback, citing weak sales of its flagship Penfolds wines in China and U.S. distribution challenges. The stock has slumped more than 40% since the start of the year. Proxy advisory firm Institutional Shareholder Services and the Australian Shareholders' Association had recommended that investors vote against Mullen's re-election, noting he also chaired Qantas and logistics firm Brambles and served on other private boards. "Can John point to any other person in recent history who has simultaneously chaired three ASX 100 companies?" one shareholder asked at the meeting. CRITICISM CALLED ILL-TIMED Mullen hit back at the criticism, saying it was ill-timed given the current leadership vacuum at the company, adding that his commitment to the company was "absolute" and he was devoting "adequate" time. He was re-elected with 14.55% of votes not in favour. Treasury is facing an extremely difficult period with troubles in its key markets and has no current chief executive, Mullen said. Former CEO Tim Ford departed on September 30 and Sam Fischer, who has helmed beer group Lion for the past three years, will not start until October 27. "At a time when the company is going through everything that it's going through that they would think it's in shareholders' interest not to have a chair … that makes me scratch my head," he said. Mullen said he intended to continue until the company was in a better position. Wine sales in China have been hurt as large-scale banquets have fallen out of favour amid the government's drive to quash excessive spending. The sales will fall well below expectations in 2026 if these trends continue, he said. "We obviously can't control Chinese consumption. But, I'm confident that it will continue to grow, albeit, perhaps at a slower level than we had first anticipated." "And in the interim, we will be doing our best to reallocate stock to other markets in the world." Shareholders also questioned the A$4 million ($2.6 million) sign-on award for incoming CEO Fischer. Mullen said the payment was necessary to compensate Fischer for forgoing incentives with Lion. Treasury's shares closed 1.8% higher. ($1 = 1.5413 Australian dollars) (Reporting by Christine Chen in Sydney; Editing by Edwina Gibbs)

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By Katya Golubkova and Sam Li TOKYO (Reuters) -Oil prices rose around 1% on Thursday after U.S. President Donald Trump said Indian Prime Minister Narendra Modi had pledged his country would stop buying oil from Russia, a move that could drain supply elsewhere. Brent crude futures rose 56 cents, or 0.9%, to $62.47 a barrel by 0655 GMT. U.S. West Texas Intermediate (WTI) futures climbed 58 cents, or 1%, to $58.85. Both contracts touched their lowest since early May in the previous session on U.S.-China trade tensions and after the International Energy Agency warned of a big surplus next year as OPEC+ producers and rivals lift output amid weak demand. Trump said on Wednesday that India – which taps its top supplier Russia for about one-third of its oil imports – would halt oil purchases from Russia, and the U.S. would next try to get China to do the same as Washington intensifies efforts to cut off Moscow's energy revenues and pressure it to negotiate a peace deal in Ukraine. However, India said on Thursday that the country's two main goals were to ensure stable energy prices and secure supply. The foreign ministry statement made no reference to Trump's comment about India's purchases of Russian oil. Some Indian refiners are preparing to cut Russian oil imports, with expectations of a gradual reduction, three sources familiar with the matter told Reuters. U.S. Treasury Secretary Scott Bessent also said on Wednesday that he told Japanese Finance Minister Katsunobu Kato that the Trump administration expects Japan to stop importing Russian energy. India and China are the two top buyers of Russian seaborne crude exports, which are sanctioned by the U.S. and European Union. For months, Modi resisted U.S. pressure to stop buying Russian oil, with Indian officials defending the purchases as vital to national energy security. "At the margin, this is a positive development for the crude oil price as it would remove a big buyer (India) of Russian oil," said Tony Sycamore, a market analyst at IG. The UK government also announced new sanctions on Wednesday, directly targeting Russia's Rosneft and Lukoil – two of the world's biggest energy companies. The sanctioned entities include four oil terminals, the private refiner Shandong Yulong Petrochemical in China, 44 tankers in the "shadow fleet" transporting Russian oil, and Nayara Energy Limited, a Russian-owned refinery in India. Later on Thursday, investors will be watching for the weekly U.S. inventory statistics release from the U.S. Energy Information Administration (EIA) after mixed data from the American Petroleum Institute (API) trade group. U.S. crude and gasoline stocks rose while distillate inventories fell last week, market sources said, citing API figures on Wednesday. Crude stocks rose by 7.36 million barrels in the week ended October 10 and gasoline inventories increased by 2.99 million barrels, while distillate inventories fell by 4.79 million barrels from a week earlier, the sources said. While lower distillate inventories point to stronger demand for diesel, a buildup in crude oil and gasoline stocks suggests demand in the U.S., the world's top oil consumer, remains sluggish. Analysts forecast that U.S. crude stockpiles rose by about 0.3 million barrels last week. (Reporting by Katya Golubkova in Tokyo and Sam Li in Beijing; Editing by Jacqueline Wong, Jamie Freed, Muralikumar Anantharaman and Kate Mayberry)

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TAIPEI (Reuters) -TSMC, the world's biggest producer of advanced AI chips, forecast fourth-quarter revenue up by as much as 24% as it rides an AI boom that saw it post its sixth consecutive quarter of double-digit profit growth, beating estimates. TSMC said it expects robust artificial intelligence demand to continue and maintained its forecast for capital spending at up to $42 billion for 2025, although it flagged a potential business impact from U.S. trade tariffs and currency moves. The Taiwan company, whose customers include Nvidia and Apple, posted a 39.1% jump in third-quarter net profit and said it would be prudent in its business planning going into 2026. Benefiting from surging demand for advanced chips used in AI applications, Taiwan Semiconductor Manufacturing Co said net profit for July-September climbed to T$452.3 billion ($14.76 billion). That was well ahead of a T$417.7 billion LSEG SmartEstimate drawn from 20 analysts. SmartEstimates are weighted toward forecasts from analysts who are more consistently accurate. TSMC said it believes the AI boom is strengthening and demand is stronger than what it had anticipated three months ago as it forecast next year to remain healthy due to robust demand for AI-related products. Trump's trade policies and threats to put tariffs on semiconductors have created uncertainty for the global chip industry and TSMC. TSMC announced plans for a $100 billion U.S. investment with Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running. On Wednesday, top semiconductor equipment maker ASML, for which TSMC is a major customer, said third-quarter bookings beat market forecasts but that it expected a significant fall in demand from China next year. Samsung Electronics said on Tuesday it expected its biggest quarterly profit in over three years, also thanks to the AI boom. Taiwan-listed shares in TSMC have risen 38% so far this year, largely brushing off concerns about tariffs, and ahead of the 20% rise for the broader market. ($1 = 30.6450 Taiwan dollars) (Reporting by Wen-Yee Lee, Faith Hung and Ben Blanchard; Editing by Christopher Cushing and Muralikumar Anantharaman)

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By Kevin Buckland TOKYO (Reuters) -Stocks rose across most of Asia on Thursday, with the chip sector buoyant following a strong rally among U.S. peers overnight and a robust start to Wall Street's earnings season also lifting the mood.  At the same time, simmering trade frictions between Beijing and Washington increased the appeal of safe havens such as gold – which renewed a record high – and undercut the dollar. Crude oil rose from five-month lows after U.S. President Donald Trump said Indian Prime Minister Narendra Modi had pledged his country would stop buying oil from Russia, which supplies about one-third of its imports. Japan's Nikkei advanced 1.2%, with chip- and artificial intelligence-related shares boosting the index. The momentum increased after Taiwanese chipmaker TSMC reported record earnings, while also benefiting from political developments that put fiscal dove Sanae Takaichi's bid to become Japan's prime minister back on track. Taiwanese share trading was already closed at the time of TSMC's announcement, ending the day up 1.4% and reaching a record. South Korea's KOSPI jumped 2.2% to its own record peak after the country's chief presidential policy adviser said he was "optimistic" about ongoing talks to finalise a trade deal with the U.S.  Australia's equity benchmark added 0.9% and also reached a record high with poor jobs data raising the odds of central bank easing.  However, Hong Kong's Hang Seng fell 0.7% and mainland Chinese blue chips were flat in a volatile session as investors pondered the path of trade ties with the U.S. European stock futures pointed 0.3% lower. U.S. stock futures were overall flat following a 0.4% gain for the S&P 500 and a 0.6% rise for the tech-heavy Nasdaq overnight. The Philadelphia SE Semiconductor Index surged 3%. "I remain of the belief that the longer-run path of least resistance continues to point firmly to the upside" for equities, said Michael Brown, senior research strategist at Pepperstone. "Though conditions have been choppy, I'd argue strongly that this is another of those occasions where the intraday price action largely represents noise." GOLD SURGE CONTINUES, DOLLAR DIPS Optimism over the AI narrative and signs of economic strength from robust U.S. bank earnings stole the spotlight for stock investors, even with Trump pronouncing late Wednesday that the U.S. is "in a trade war with China" – confirming what markets had already concluded from recent comments from both sides. Gold rose as much as 0.8% in the latest session to reach an unprecedented $4,241.77 per ounce. The dollar sagged for a third straight session, dropping 0.1% against a basket of major peers. It slipped as much as 0.4% to 150.51 yen, putting the psychologically key 150 line briefly in focus, although the pair bounced back to be flat ahead of the open of European markets. Part of that retracement came following news that ruling Liberal Democratic Party leader Takaichi was in talks with one of the opposition parties – the right-leaning Japan Innovation Party – for a partnership aimed at securing enough parliament votes to win the premiership in a vote likely to take place next week. The euro added 0.1% to $1.1657, and sterling rose 0.1% to $1.3412. There were some hopeful signs of calming trade tensions, with U.S. Treasury Secretary Scott Bessent saying an extension of the current tariff reprieve was possible, and that Trump still expected to meet Chinese leader Xi Jinping in South Korea later this month. "The brinkmanship between the U.S. and China hasn't dissipated yet," said Kyle Rodda, senior financial markets analyst at Capital.com. "It will only simmer down completely when the Chinese back off the threat of rare earth export curbs and the U.S. reverse the tariff hike to 100% slated for November 1. Until then, trepidation will remain in the markets." Trump's trade manoeuvres also lifted oil off five-month lows, with Brent crude futures up 0.8% at $62.41 a barrel and U.S. West Texas Intermediate (WTI) futures adding 0.9% to trade at $58.77. On Wednesday, the U.S. president said India would halt oil purchases from its top supplier Russia, and Washington would next try to get China to do the same as it intensifies efforts to cut off Moscow's energy revenues and pressure it to negotiate a peace deal in Ukraine. (Reporting by Kevin BucklandEditing by Shri Navaratnam)

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By Alun John, Dhara Ranasinghe and Stefano Rebaudo LONDON (Reuters) -France's financial markets are riding a roller-coaster, as the country grapples with one of its worst political crises in decades, and while sentiment is improving, the bumpy ride is not over.  French Prime Minister Sebastien Lecornu has promised to suspend a landmark pension reform until after the 2027 election, sacrificing one of President Emmanuel Macron's achievements to ensure the government's survival. He is facing no confidence votes in parliament Thursday but appears likely to survive. Here's a look at where markets stand, and what comes next.  BOND VIGILANTES IN HIDING? The gap between 10-year French and German bond yields, the premium investors require to lend to France, is around 77 basis points, down from almost 90 bps last week.  It could tighten towards 75 bps, said Citi's senior rate strategist Aman Bansal.   It narrowed as investors focused on political stability over long-term fiscal worries. Lecornu's plan to suspend pension reform means he'll likely stay in his job, avoiding snap elections, even if some parties have called a no-confidence vote for Thursday. RBC BlueBay Asset Management senior portfolio manager Kaspar Hense said the firm had closed out of its short position – a bet on price falls – in French bonds last week on expectations a political compromise would be found.  "Demand for OATs (French bonds) remains strong at these levels of real and nominal yields," said Reinout De Bock, head of European rate strategy at UBS.  RATINGS WATCH  French borrowing costs remain among the highest in the euro zone, and because suspending the key pension reforms keeps pressure on public finances, France is vulnerable to further ratings downgrades. Lecornu says the suspension would cost 400 million euros ($463 million) in 2026 and 1.8 billion euros in 2027. Without offsetting measures, France's debt-to-GDP ratio would fail to stabilise, analysts say. Goldman Sachs reckons permanent suspension of the pension reform would add 0.5% of GDP to the deficit by 2035, so debt as a share of GDP over the next decade stabilises closer to 130% compared to around 113% now.  Moody's, which rates France at Aa3 with a stable outlook, reviews its long-term rating on October 24.  "We expect some downgrade pressure but this is priced in by markets," said BlueBay's Hense. STOCKS SOAR  France's blue chip share index rose 2% on Wednesday, its best day since early May, but that's not much to do with politics — luxury giant LVMH surged 12% after results. French midcaps are up around 0.25% but have underperformed longer term, up 9% in the past two years, compared to 15% for the blue chip index, and 26% for the overall European benchmark.  And that could continue.  Claudia Panseri, chief investment officer at UBS Wealth Management France, said that even if politics stabilises, fiscal and political challenges would still hang over domestic stocks. "European investors may prefer to focus on more internationally diversified companies within the CAC 40, which are less exposed to domestic risks," she said. BANKS BOUNCE BACK  But politics does matter for French banks.  "Banks have been the most sensitive sector to the political situation in France, and the most (bond) spread sensitive as well," said Barclays head of European equities strategy Emmanuel Cau.  Higher spreads typically mean higher wholesale funding costs for banks, hurting profits.  Societe Generale, BNP Paribas and Credit Agricole shares jumped over 2% in early trade Wednesday before steadying, having underperformed other European banks and broader French stocks last week when Lecornu stepped down.  Societe Generale's share price has doubled this year and any underperformance in banks may present a buying opportunity.  EURO RECOVERS FROM A COLD  A stellar euro rally has been dented by the political turmoil and it too is expected to benefit from stability.  ING currency strategist Francesco Pesole said the euro was looking less "fragile" with the French/German bond spread below 80 bps, adding he was watching no-confidence motions. "If Lecornu survives the no-confidence vote, euro/dollar could edge higher and potentially build strong support around $1.160," he said. It's trading around $1.166, up 12% this year. ​ (Reporting by Alun John, Dhara Ranasinghe and Stefano Rebaudo; additional reporting by Lucy Raitano; Editing by Toby Chopra)

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By John Revill IBACH, Switzerland (Reuters) -Swiss Army Knife maker Victorinox is trying to hold down its U.S. prices, while exploring new markets, as it experiments with new tools to navigate President Donald Trump's trade tariffs.  Popularised in the United States by soldiers who were based in Europe after World War Two, the distinctive red-and-silver multi-tool is made at a factory in Ibach, central Switzerland.   There, rolls of stainless steel are punched into blades, which are rounded with abrasive ceramic stones and baked at more than 1,000 degrees Celsius before being sharpened. Victorinox, which produces 10 million Swiss Army Knives a year alongside kitchen and commercial knives, watches and luggage, is one of many Swiss manufacturers worried about the higher cost of doing business with the United States. Trump imposed tariffs of 39% on imports of goods from Switzerland in August in a bid to cut the U.S. trade deficit with the country. "If the tariffs stay in place, that's an exceptionally challenging situation," said CEO Carl Elsener, whose great-grandfather founded the company in 1884, adding the higher levy would cost Victorinox some $13 million a year. The U.S. accounted for around 13% of Victorinox's 417 million Swiss franc ($519 million) sales in 2024 and if the 39% tariff stays in place every product it ships to the U.S. will lose money, Elsener told Reuters. Victorinox has responded by sending extra stock to the U.S. to build up inventories and pushing efficiencies at its Swiss plants. It is also considering doing some polishing and packaging work in the U.S. to lower its cost at time of import. "We are trying to reduce our dependence on the U.S. market by trying to expand more strongly in other markets like Latin America and Asia," Elsener said of Victorinox, which has around 100 U.S. staff in sales, marketing and logistics. AVOIDING US PRICE HIKES Family-owned Victorinox is not alone in feeling the pinch. A survey last month by the Swiss Mechanic trade body showed 45% of Swiss small- and medium-sized manufacturing companies had experienced lower order intakes since the U.S. tariffs. Swiss firms' profit margins are already being eroded by a 12% rise in the franc against the dollar this year. Novartis and Roche are among those potentially in the firing line if the tariffs extend to drugmakers, while Swiss watchmakers like Omega-owner Swatch Group, as well as food giant Nestle, which exports Nespresso capsules, are already being hit. "Our priority is to defend market share while the situation is so unpredictable," said Elsener, adding: "Our investment in the United States right now is to avoid price increases and accept the losses – that's our sacrifice to keep market share." Victorinox sent two extra 40‑foot containers with about 200,000 Swiss Army Knives, plus 200,000 kitchen and commercial knives, to the United States in February and March.  That should mean it has sufficient stock in the U.S. until the end of this year, and up until March for some products, and be able to keep prices there steady into 2026. MAKING SWISS ARMY KNIVES ABROAD 'NOT AN OPTION' Victorinox – which is raising some targeted prices – is accelerating automation and efficiency programmes at its Ibach facility, where 25 members of the family still work.  It considered moving some production to the United States or elsewhere in Europe to lessen the tariffs impact, but ultimately decided against this because it lacks the scale, Elsener said. Instead, it is looking at limited end-of-line work in the U.S. — such as cleaning and packaging of commercial knives — to cut the dutiable value, he added. What it cannot do is make its products elsewhere, as to qualify for the coveted Swiss-made label, at least 60% of manufacturing costs must be in Switzerland.  "Producing the Swiss Army Knife abroad is not an option," said Elsener, adding the brand depends on its Swiss heritage.  Nevertheless, he is confident for the future. "We got through the First World War, the Depression, the Second World War, the global economic crisis, the oil crisis," he said. "This is just the latest challenging situation, which I'm confident we can overcome."  ($1 = 0.8034 Swiss francs)   (Reporting by John Revill; Editing by Dave Graham, Adam Jourdan and Alexander Smith)

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By Alexander Marrow (Reuters) -Nestle will axe 16,000 jobs as it tries to raise sales volumes, new CEO Philipp Navratil said on Thursday, as the world's largest packaged food company reported better-than-expected sales growth thanks to pricing-led upticks in coffee and confectionery. Navratil, the former head of Nespresso, replaced Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report. Nestle has endured an unprecedented period of managerial turmoil, with Chairman Paul Bulcke stepping down early to make way for former Inditex chief Pablo Isla two weeks later. A 1.5% rise in real internal growth (RIG) – a measure of sales volumes – in the third quarter, well above analysts' expectations of a 0.3% rise, may offer Navratil breathing space as he looks to make his mark following his sudden promotion. As Nestle tries to become more efficient, Navratil said there would be 12,000 white collar job cuts, in addition to a further 4,000 headcount reduction as part of ongoing initiatives in manufacturing and supply chain. Nestle employs around 277,000 people worldwide. The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reignite stalling sales growth and arrest a steep share price slide as costs have risen and debt levels have climbed amid rising investor pressure. Navratil said driving RIG-led growth was Nestle's top priority and that it would raise its costs savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027. "We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded," Navratil said in a statement. "The world is changing, and Nestlé needs to change faster." ($1 = 0.7955 Swiss francs) (Reporting by Alexander MarrowEditing by Dave Graham)

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By Alexander Marrow (Reuters) -Nestle will axe 16,000 jobs as it tries to raise sales volumes, new CEO Philipp Navratil said on Thursday, as the world's largest packaged food company reported better-than-expected sales growth thanks to pricing-led upticks in coffee and confectionery. Navratil, the former head of Nespresso, replaced Laurent Freixe, who was fired in September as chief executive over an undisclosed relationship with a direct report. Nestle has endured an unprecedented period of managerial turmoil, with Chairman Paul Bulcke stepping down early to make way for former Inditex chief Pablo Isla two weeks later. A 1.5% rise in real internal growth (RIG) – a measure of sales volumes – in the third quarter, well above analysts' expectations of a 0.3% rise, may offer Navratil breathing space as he looks to make his mark following his sudden promotion. As Nestle tries to become more efficient, Navratil said there would be 12,000 white collar job cuts, in addition to a further 4,000 headcount reduction as part of ongoing initiatives in manufacturing and supply chain. Nestle employs around 277,000 people worldwide. The Swiss maker of KitKat chocolate bars, Nespresso coffee and Maggi seasoning has been fighting to reignite stalling sales growth and arrest a steep share price slide as costs have risen and debt levels have climbed amid rising investor pressure. Navratil said driving RIG-led growth was Nestle's top priority and that it would raise its costs savings target to 3 billion Swiss francs ($3.77 billion) from 2.5 billion francs by the end of 2027. "We are fostering a culture that embraces a performance mindset, that does not accept losing market share, and where winning is rewarded," Navratil said in a statement. "The world is changing, and Nestlé needs to change faster." ($1 = 0.7955 Swiss francs) (Reporting by Alexander MarrowEditing by Dave Graham)

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