Nestlé, the maker of Nespresso coffee capsules and KitKat bars, has dismissed its chief executive officer, Laurent Freixe, with immediate effect over what it described as an “undisclosed romantic relationship with a direct subordinate.”
The Swiss multinational confirmed the decision on Monday, following an internal investigation that concluded Freixe had breached the company’s code of business conduct.
In a swift succession plan, Nestlé announced the appointment of Philipp Navratil, the CEO of its Nespresso unit, as the new chief executive.
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s code of business conduct,” the company said in a statement.
The probe was led by chairman Paul Bulcke and lead independent director Pablo Isla, with support from external legal counsel. Bulcke described the dismissal as unavoidable, saying: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
Freixe, a Nestlé veteran who joined the company in France in 1986, rose through the ranks over nearly four decades. He headed the European division during the subprime and euro crises, later managed operations in Latin America, and was appointed global CEO in September 2024.
He was tasked with reviving consumer spending on Nestlé’s household and food products. Still, he faced tough challenges, including a steep decline in profits and a nearly 25 per cent drop in share value last year. This development rattled Swiss pension funds heavily invested in the multinational.
Despite the leadership shake-up, Nestlé’s shares closed slightly higher on Monday, up 0.13 per cent at 75.49 Swiss francs.
Navratil, who joined Nestlé in 2001, has held senior roles across Central America and Mexico, including leading strategy for Nescafé and Starbucks brands. He became Nespresso CEO in 2024 and joined the Nestlé board earlier this year.
The new chief executive pledged continuity in strategy and operations, saying: “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance. I will drive the value creation plan with intensity.”
Chairman Bulcke also assured stakeholders that the company would stay the course on growth and efficiency plans.
