Nestlé has announced the sudden dismissal of its chief executive, Laurent Freixe, after revelations surfaced about an undisclosed romantic relationship with a subordinate.
The company said the decision was necessary to protect its values and uphold governance principles.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” the company stated.
Freixe, who joined Nestlé in France in 1986, had only served as CEO since September 2024. Before that, he oversaw Nestlé’s European operations and later led the Latin America division.
Following his exit, Nestlé’s board appointed Philipp Navratil, then CEO of Nespresso, as the new chief executive. Navratil, who joined Nestlé in 2001, has held several leadership positions across Central America and played a key role in global strategy for Nescafé and Starbucks brands before assuming leadership of Nespresso in July 2024.
Chairman Paul Bulcke expressed confidence in the new CEO, noting: “The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance.”
Nestlé recently reported a 10.3% decline in first-half profits, citing weak consumer spending in China, even after passing higher cocoa and coffee costs onto buyers.
The company’s share value dropped nearly 25% last year, sparking concern among Swiss pension funds with large Nestlé holdings.
Navratil promised to continue with the current strategy and push forward with the company’s value creation initiatives.
Nestlé, headquartered in Vevey on Lake Geneva, is home to global brands such as Nespresso, KitKat, Purina, Maggi, Gerber, and Nesquik.