Nestlé CEO Laurent Freixe sacked over undisclosed relationship
Swiss food and beverage giant Nestlé has dismissed chief executive Laurent Freixe, following an internal investigation into an undisclosed romantic relationship with a direct subordinate.
In a statement, the company - whose brands include Nespresso, KitKat, Purina, Maggi and Nesquik - confirmed that Mr Freixe’s actions breached Nestlé’s code of business conduct.
“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 board said.
The investigation was overseen by Nestlé chairman Paul Bulcke and lead independent director Pablo Isla, with external legal support.
Mr Bulcke said: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
A company veteran
Mr Freixe joined Nestlé in France in 1986 and went on to lead its European division through the subprime and euro crises before heading the Latin American business. He was promoted to CEO in September 2024 in a surprise appointment, tasked with addressing slowing consumer spending across Nestlé’s food and household goods portfolio.
However, the company struggled to regain investor confidence. Nestlé’s share price fell by almost a quarter in 2024, with Swiss pension funds - heavily invested in the business - among those raising concerns.
The group’s most recent results, released in July, showed a 10.3% decline in first-half profits, as weaker consumer spending in China and rising cocoa and coffee costs pressured margins.
Philipp Navratil steps in
Nestlé’s board has moved quickly to appoint a successor. Philipp Navratil, until now CEO of Nespresso and a company board member since January 2025, will take over the role with immediate effect.
Mr Navratil began his Nestlé career in 2001 and has held senior roles across Central America and Mexico, where he oversaw the coffee and beverage business. From 2020, he was responsible for global strategy and innovation across Nescafé and Starbucks products before taking the reins at Nespresso in July 2024.
The company says its strategic course will not change under Mr Navratil.
Paul Bulcke, Chairman, said: "This was a necessary decision. Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé."
He continued: "I am pleased to announce Philipp Navratil as CEO. Philipp is recognised for his impressive track record of achieving results in challenging environments. Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. 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."
Mr Navratil himself pledged to push forward Nestlé’s turnaround, he said: "I am honored by the trust the Board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future. I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestlé's performance. I look forward to working closely with the entire leadership of the company, in alignment with the board, Chairman Paul Bulcke, and Chairman-Designate Pablo Isla, to accelerate execution and to drive the value creation plan with intensity."
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