Laurent Freixe, the chief executive officer of Nestle has been dismissed with immediate effect following an “undisclosed romantic relationship with a direct subordinate.”
The maker of Nespresso coffee capsules and KitKat bars said the move came after an internal investigation.
In a swift succession plan, the board appointed Nespresso CEO Philipp Navratil as the new chief executive.
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle’s code of business conduct,” the company said in a statement.
The investigation was overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with support from external counsel.
“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke added.
Freixe, a company veteran, began his career with Nestle in France in 1986. He managed European operations through the subprime and euro crises, later headed the Latin America division, and only rose to the top role in September 2024. He was tasked with reviving consumer spending on the company’s household and food products.
Nestle, whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik drinks, has faced mounting financial pressure. Its share price dropped by nearly a quarter last year, raising concern among Swiss pension funds heavily invested in the multinational.
Despite the turbulence, shares closed up 0.13 percent at 75.49 Swiss francs on Monday.
In late July, the company reported a 10.3 percent slump in first-half profits as it struggled with weak consumer spending in China, even after raising prices of cocoa and coffee-based products.
Navratil, who joined Nestle in 2001, has held various roles across Central America and Mexico, including global strategy for Nescafe and Starbucks brands. He became CEO of Nespresso in 2024 and joined the Nestle board 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,” Bulcke insisted.
Navratil pledged continuity, saying: “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance. I will drive the value creation plan with intensity.”