Nestlé sacks CEO Laurent Freixe over affair with subordinate, installs insider to steady ship

Nestlé abruptly fired Chief Executive Officer Laurent Freixe after just one year in the role, following an internal probe into an undisclosed affair with a subordinate that violated company policy, the Swiss food giant said Monday.

The dismissal extends a wave of executive instability at Nestlé, which had positioned Freixe as a steady successor after ousting his predecessor, Mark Schneider, in 2024. The company said the relationship violated its code of conduct and was first flagged via an internal whistleblower system.

Freixe’s replacement is Philipp Navratil, who previously led the company’s Nespresso brand. “This was a necessary decision,” said Chairman Paul Bulcke. “Nestlé’s values and governance are strong foundations of our company.”

Freixe becomes the latest consumer-industry CEO to lose his job over workplace relationships, following exits at McDonald’s and Kohl’s in recent years. Nestlé confirmed he will receive no exit package.

His departure follows a turbulent tenure. Freixe attempted to refocus Nestlé on core strengths, spinning off its waters business and reviewing underperforming vitamin brands. However, shares fell 17% during his time at the helm, and second-quarter volumes shrank 0.4%.

Navratil, a Nestlé veteran of over two decades, is seen as a stabilizing force with a potentially long runway. He joined the executive board this year and previously managed global strategy for Nescafé and the Starbucks partnership.

Analysts suggest Navratil could steer portfolio restructuring, including exits from slower-growth categories like cereals and bottled water. But he also inherits mounting external pressures — including new 39% tariffs under U.S. President Donald Trump on Swiss-made Nespresso capsules.

Nestlé’s internal investigation was led by Bulcke and lead independent director Pablo Isla, with outside counsel. Isla has been nominated to succeed Bulcke as chairman next year.