The global food industry, Swiss multinational Nestlé has dismissed its chief executive officer, Laurent Freixe, with immediate effect following an internal investigation into an undisclosed romantic relationship with a direct subordinate. The move, announced on September 1, 2025, marks the second CEO change at the company in just over a year and underscores the company’s strict adherence to its code of business conduct.
Nestlé, the world’s largest packaged-food maker known for iconic brands like KitKat, Nespresso, Häagen-Dazs, and Nescafé, stated that Freixe’s failure to disclose the relationship breached company policies, particularly due to the potential conflict of interest it posed. The investigation was overseen by Nestlé’s chair, Paul Bulcke, and lead independent director Pablo Isla, with support from independent outside counsel. It was reportedly triggered by a whistleblower report through the company’s internal channel.
“This was a necessary decision,” Bulcke said in an official statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.” Freixe, who had been with the company for nearly 40 years since joining in 1986, will not receive any exit package.
The relationship involved an employee outside the executive board, and initial concerns were raised earlier this year. According to reports from the Financial Times, an early internal probe deemed the allegations unsubstantiated, but persistent complaints led to a more thorough external investigation, which ultimately upheld the claims. A Nestlé spokesperson emphasized the company’s commitment to best practices in corporate governance, noting that the external review was launched promptly after the initial findings.
Freixe assumed the CEO role in September 2024, succeeding Mark Schneider, who was ousted amid concerns over his cultural fit and strategic decisions, including continued operations in Russia post-Ukraine invasion. During his brief tenure, Freixe navigated challenges such as rising commodity costs, underperformance in the vitamins and supplements division, and efforts to offset higher prices for coffee and cocoa. Nestlé reported 3% organic sales growth in its second fiscal quarter in July 2025, but the company is currently reviewing options for its struggling health supplements business, potentially including divestitures.
In a swift transition, Nestlé has appointed Philipp Navratil, the current CEO of Nespresso, as Freixe’s successor. Navratil, 48, has been with the company since 2001, starting as an internal auditor. His career trajectory includes roles in Central America, where he served as country manager for Nestlé Honduras in 2009 and led the coffee and beverage business in Mexico from 2013. He later headed the Coffee Strategic Business Unit in 2020 before taking the helm at Nespresso in July 2024 and joining the executive board in January 2025.
Bulcke praised Navratil’s “impressive track record of achieving results in challenging environments” and his “dynamic presence” that inspires teams. “The board is confident that he will drive our growth plans forward and accelerate efficiency efforts,” Bulcke added. “We are not changing course on strategy, and we will not lose pace on performance.” Navratil himself expressed honor in the appointment, stating he fully supports the company’s strategic direction and action plan to enhance performance.
The dismissal sent Nestlé’s shares tumbling, opening down more than 2.5% on European markets on September 2. Analysts have raised questions about the rapid leadership changes, with Kepler Cheuvreux’s Jon Cox noting, “This is not the Nestlé way to do things, to have two CEO replacements in just over a year.” JP Morgan analysts echoed concerns that the upheaval could prolong uncertainty about the company’s mid-term direction, especially amid broader industry headwinds like U.S. tariffs and commodity inflation.
This incident is not isolated in the corporate world. High-profile cases include BP’s Bernard Looney, who resigned in 2023 after failing to disclose past relationships with colleagues, leading to his formal dismissal for serious misconduct. Similarly, McDonald’s fired CEO Steve Easterbrook in 2019 over a consensual relationship with an employee, later discovering additional violations; he returned a $105 million severance and faced a $400,000 fine from U.S. regulators in 2023. These examples highlight a growing emphasis on transparency in executive personal relationships to avoid conflicts of interest and maintain workplace integrity.
Nestlé, headquartered in Vevey, Switzerland, employs over 270,000 people worldwide and reported annual sales exceeding $100 billion in recent years. The company has faced other controversies, including a 2020 harassment lawsuit settlement involving former chair Bulcke, where a whistleblower alleged retaliation over food safety concerns. As Bulcke prepares to step down in 2026, with Isla proposed as his replacement, the focus now shifts to Navratil’s ability to stabilize leadership and steer the giant through ongoing market pressures.
Nestlé has not provided further details on the relationship or the involved employee, and attempts to contact Freixe for comment were unsuccessful. The company reiterated its dedication to ethical standards, stating it takes all allegations seriously to uphold a culture of accountability.