Nestlé sacks CEO Freixe over undisclosed office affair
Nestlé has dismissed its chief executive, Laurent Freixe, after he failed to disclose a romantic relationship with a subordinate, the Swiss food conglomerate announced on Monday ( September 1). The move comes exactly a year after he assumed the role, marking another dramatic shake-up at the company.
Philipp Navratil, a long-serving executive who most recently headed the Nespresso division, has been appointed to take over immediately.
The dismissal follows an internal probe led by Chairman Paul Bulcke and lead independent director Pablo Isla, which confirmed Freixe’s breach of the firm’s code of conduct.
Initial suspicions of the relationship were raised in the spring via the company’s whistleblowing hotline. Freixe denied the allegations, but a second investigation with external assistance later verified the claims. Nestlé confirmed that he will not receive a severance package.
“This was a necessary step,” Bulcke said, emphasising that the group’s values and governance remain its “strong foundations”. He thanked Freixe for his service to the company.
The leadership turmoil adds to uncertainty for Nestlé, which is already grappling with weak consumer sentiment and the impact of US trade tariffs.
Shares in the company have fallen 17% over the past year, underperforming both peers and the wider market.
Analysts at JP Morgan warned the abrupt change “keeps alive questions about the company’s mid-term direction”, despite Nestlé insisting it will stay the course on its current strategy and targets.
Freixe’s ouster follows last year’s removal of his predecessor, Mark Schneider, underlining a period of instability at the top of the world’s largest food producer.
The episode also echoes broader governance challenges in the consumer goods sector, with rivals such as Unilever, Diageo and Hershey also reshuffling senior leadership this year.
Navratil, who joined Nestlé as an auditor in 2001, has held senior roles across Latin America and the coffee business before moving to Nespresso in 2024.
He became a member of the executive board in January 2025 and is now tasked with steadying the group after two consecutive leadership crises.
Reuters
