Nestle has abruptly dismissed its Chief Executive Officer, Laurent Freixe, for failing to disclose a romantic relationship with a direct subordinate, a clear breach of the company’s code of business conduct. The Swiss food giant announced the dramatic removal exactly one year after Freixe took the reins, appointing Philipp Navratil, the former head of its Nespresso coffee unit, as his immediate successor. This shock departure threatens to create further volatility for the company as it navigates a tough consumer environment and disruptive U.S. trade tariffs.
The dismissal follows an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla. According to a company spokesman, concerns about the relationship first emerged in the spring through an internal hotline. An initial board investigation was inconclusive, but a second probe, conducted with the help of an external firm, confirmed the relationship after concerns persisted. The spokesman added that Freixe had initially denied the relationship to the board.
In a statement, Chairman Bulcke called the dismissal a “necessary decision,” emphasizing that Nestle’s values and governance are strong foundations of the company. As a result of the breach, Freixe will not receive an exit package. The ouster comes at a time of significant transition for Nestle, which announced in June that the long-standing Bulcke would step down as chairman next year.
This is the second consecutive year Nestle has abruptly removed its CEO, having ousted predecessor Mark Schneider exactly one year prior. The repeated turmoil at the top raises questions about stability within the company’s leadership. Despite the shake-up, Nestle stated that it would not change course on its overall strategy and targets, aiming to project a sense of continuity under new CEO Philipp Navratil.
