Swiss food and beverage giant Nestlé announced on Monday that it has dismissed its chief executive officer, Laurent Freixe, after an internal investigation revealed he engaged in an inappropriate relationship with a direct subordinate. The company said the decision, effective immediately, was made following a review that concluded the undisclosed relationship represented a clear violation of Nestlé’s long-standing code of conduct.
Nestlé, whose products range from Nescafé coffee and KitKat chocolate bars to Purina pet food and Nespresso capsules, stressed that the company’s culture and values leave no room for breaches of professional integrity at the highest levels of leadership.
“This was a necessary decision,” said Chairman Paul Bulcke in a statement. “Nestlé’s values and governance are strong foundations of our company, and they must be upheld consistently — no matter the individual or the circumstances.”
Freixe, who had served as CEO for just one year, had previously built a decades-long career within Nestlé, holding senior roles across several regions. His abrupt departure marks a significant leadership shift for the multinational giant, which employs more than 270,000 people worldwide and operates in nearly 190 countries.
To ensure stability and continuity, Nestlé’s board appointed Philipp Navratil, a company veteran, as the new CEO. Navratil has been with Nestlé since 2001, starting as an internal auditor before holding a series of international leadership positions, particularly in Central America. In 2020, he joined the company’s Coffee Strategic Business Unit, where he played a key role in global strategy and growth. Most recently, in 2024, he became CEO of Nestlé’s highly profitable Nespresso division, helping steer the brand through a competitive market while expanding its sustainability initiatives.
Industry analysts noted that while the dismissal of a sitting CEO is a rare and disruptive event for a company of Nestlé’s size, the swift decision highlights the board’s commitment to maintaining ethical leadership standards. With global food and beverage markets facing rising costs, shifting consumer habits, and sustainability challenges, the transition comes at a pivotal time.
For Nestlé, the move underscores the delicate balance between corporate reputation and executive accountability. While the company avoided sharing additional details about the internal probe, its firm stance signals to investors and employees alike that ethics and governance will remain central to its leadership framework.
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