Swiss food giant Nestlé disclosed on Monday that it has sacked Chief Executive Laurent Freixe with immediate effect after an "undisclosed romantic relationship with a direct subordinate" was revealed.
The global company behind brands like Nespresso and KitKat said that Freixe's departure was the result of a formal inquiry. Nespresso head Philipp Navratil was installed by the board in a swift change to take over as CEO.
"The resignation of Laurent Freixe comes after an investigation of an undisclosed personal romantic relationship with a direct report that violated Nestle's code of business conduct," the company stated in a release.
The investigation was led by Nestlé chairman Paul Bulcke and lead independent director Pablo Isla, supported by outside legal advisers.
"This was an unavoidable choice. Nestle's governance and values are sound pillars of our organization. I am grateful to Laurent for his long service," Bulcke stated.
Freixe, who joined Nestlé France in 1986, took three decades to climb up the corporate ladder. He navigated Nestlé's European business through the eurozone crisis and financial crisis of 2008 before shifting to run Latin American operations. In September 2024, he surprised everyone by becoming the CEO, with the mission of dealing with slowing consumer demand for Nestlé's food and household offerings.
In spite of his stewardship, Nestlé's stock price fell almost 25% last year, raising alarm in Switzerland, where pension funds own big stakes in the company. Its brands comprise Purina pet food, Maggi seasonings, Gerber baby fare, and Nesquik drinks. On Monday, however, shares crept up modestly, finishing at 75.49 Swiss francs, a 0.13% increase.
Nestlé announced in late July that first-half net profits dropped 10.3%, pushed down by weak demand in China, despite the fact that the company had passed on increases in cocoa and coffee costs to consumers.
Navratil, who joined Nestlé in 2001, has risen through the ranks to the top job from leadership positions in Central America, Mexico coffee and beverage division, and subsequently global strategy at Nescafé and Starbucks brands. He was named Nespresso chief executive in July 2024 and became a member of Nestlé's board of directors in January 2025.
"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," insisted chairman Bulcke.
"I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestle's performance," said Navratil, pledging to "drive the value creation plan with intensity".
Read also| ‘Never Felt Better In My Life’: US President Responds to Viral ‘Trump is Dead’ Rumors
