Swiss food conglomerate Nestlé terminated CEO Laurent Freixe on Monday following an investigation into an undisclosed romantic relationship with a direct subordinate, marking another significant leadership change for the global food manufacturer.
The company announced Freixe’s immediate dismissal after determining the relationship violated Nestlé’s code of conduct. Philipp Navratil, a longtime company executive, will replace Freixe as chief executive.
“This was a necessary decision,” said Chairman Paul Bulcke. “Nestlé’s values and governance are strong foundations of our company.” The investigation details remain confidential, with no additional information released about the circumstances.
Freixe had served as CEO for just over one year after taking the position in September 2024. His tenure began when he replaced Mark Schneider following a company restructuring that elevated him from CEO of Zone Latin America, a role he assumed during Nestlé’s geographic reorganisation in January 2022.
The dismissed executive had worked for Nestlé since 1986, holding positions across various global markets before his rapid ascent to the top leadership role. His dismissal represents a swift fall from grace for someone who had been viewed as a rising star within the organisation.
Navratil brings extensive company experience to the CEO position, having joined Nestlé in 2001 as an internal auditor. He progressed through various roles in Central America before joining the Coffee Strategic Business Unit in 2020 and becoming CEO of the Nespresso division in 2024.
The leadership change adds to recent personnel upheaval at the Vevey-based company. Chairman Bulcke announced in June that he would not seek reelection in 2026, ending his tenure that began in 2017. Additionally, Steve Presley, executive vice president and CEO of Zone Americas, retired in April after nearly 30 years with the company.
Nestlé faces operational challenges common to food manufacturers, including rising commodity costs and tariff impacts. The company reported in July that it offset higher coffee and cocoa-related expenses through price increases, reflecting broader industry pressures affecting profit margins.
The CEO dismissal underscores corporate governance standards increasingly enforced across multinational companies, where undisclosed relationships between supervisors and subordinates are viewed as potential conflicts of interest that can create workplace liability and ethical concerns.
For Nestlé, which produces brands including Nescafé drinks and Purina pet food, the leadership transition occurs during a period requiring steady management to navigate commodity price volatility and evolving consumer preferences in global markets.
