The new CEO of Nestlé, Laurent Freixe, has lowered the sales growth forecast for the current year to around 2 percent. This is the first time since 1999 that the world's largest food company has revised its sales forecast downward. Freixe attributed this to the continued weakness in consumer demand and simultaneously announced extensive organizational changes to improve the company's performance.

Freixe, who took over leadership from Mark Schneider in July, assured investors that Nestlé is "not broken." "There is nothing wrong with our categories or the 31 'billionaire' brands. We have an enormous presence and are the most globally connected and localized company," he emphasized to the Financial Times. Despite lowering the sales forecast, Freixe remains optimistic and promises to realize the full potential of the company.

The decision to lower the sales forecast reflects the challenges Nestlé is facing.

To enhance competitiveness, Freixe has announced extensive organizational changes. This includes merging the North and Latin America regions into a single reporting unit, now managed from the Swiss headquarters. Additionally, the Greater China region will be integrated into the Asia, Oceania, and Africa (AOA) zone. All department heads now report directly to the CEO to create a leaner and more agile structure. "We need to become faster, leaner, and more competitive," stated division head Michael Schoellhorn.

These measures aim to increase efficiency and improve collaboration within the company. At the same time, the social impact of job cuts is to be minimized by providing affected employees with new employment opportunities in high-growth areas. The strategy also includes the reduction of targets for operating earnings per share and profitability, with the operating profit margin now standing at about 17 percent, compared to 17.3 percent in the previous year.

Analysts see the new forecasts and restructurings as necessary steps to stabilize Nestlé in an increasingly challenging market environment. Jean-Philippe Bertschy of Vontobel described the revenue cut as a "very painful realignment," unprecedented in the company's 158-year history. "The top priority of the new management team is to refocus Nestlé on its core competencies and strengthen the connection with consumers," said Bertschy.