Swiss food conglomerate Nestle has removed Laurent Freixe from his position as chief executive immediately due to an undisclosed romantic involvement with a subordinate, the company announced on Monday. The decision came after an internal investigation conducted by Nestle, known for brands like Nespresso and KitKat.
In a rapid transition, Philipp Navratil, the CEO of Nespresso, was appointed by the board to take over Freixe’s role. The board stated that Freixe’s dismissal was necessary as his romantic relationship with a direct subordinate violated Nestle’s business conduct code.
The investigation was overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with external legal counsel support. Bulcke expressed gratitude for Freixe’s years of service but emphasized that Nestle’s values and governance are fundamental to the company.
Freixe, a long-time Nestle employee who joined in 1986, previously led the company’s European and Latin American divisions before becoming CEO. He took over as CEO in September 2024 with the task of improving consumer spending for Nestle’s products.
Nestle’s stock price dropped significantly last year, causing concerns in Switzerland where pension funds heavily invest in the company. Despite the challenges, Nestle’s shares closed slightly up on the Swiss stock exchange.
In a separate development, Nestle reported a 10.3% decrease in first-half profits in July, partly due to consumer spending trends in China and rising cocoa and coffee prices. The newly appointed CEO Navratil, a former executive vice-president, is expected to lead the company’s growth plans and enhance efficiency.
Navratil, who began his career at Nestle in 2001, has held various roles within the company, including overseeing global strategy and innovation for Nescafe and Starbucks brands. He assumed the role of Nespresso CEO in July the previous year and joined the company’s board in January 2025.
Navratil expressed confidence in Nestle’s strategic direction and committed to driving the company’s performance through the existing action plan. The leadership change at Nestle reflects a recurring trend in the business world where top executives have faced consequences for violating internal policies regarding relationships with colleagues.