Swiss food conglomerate Nestle on Monday announced the immediate dismissal of its chief executive, Laurent Freixe, due to an “undisclosed romantic relationship with a direct subordinate.”
The company, known for Nespresso coffee capsules and KitKat chocolate bars, stated that Freixe’s removal followed a thorough investigation. In a prompt decision, the board appointed Nespresso CEO Philipp Navratil as the new chief executive.
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle’s code of business conduct,” a statement said.
The investigation was overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with assistance from external legal counsel.
“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said in a statement.
Freixe, a long-serving employee, joined Nestle in France in 1986. He led the company’s European operations until 2014, navigating challenges like the subprime and euro crises that began in 2008. Later, he managed the Latin America division before being elevated to CEO.
Freixe assumed the CEO role in September 2024, tasked with addressing declining consumer spending on Nestle’s food and household products. Last year, Nestle’s share price dropped by nearly 25%, raising concerns among Swiss pension funds heavily invested in the company, which owns brands like Purina dog food, Maggi bouillon cubes, Gerber baby food, and Nesquik chocolate-flavored drinks. On Monday, Nestle shares closed up 0.13 percent at 75.49 Swiss francs on the Swiss stock exchange.
In late July, Nestle reported a 10.3-percent decline in first-half profits, struggling to recover amid reduced consumer spending in China, even as it passed on higher cocoa and coffee prices to customers.
The new CEO, Philipp Navratil, previously served as an executive vice-president at Nestle, headquartered in Vevey on Lake Geneva. “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,” insisted chairman Bulcke.
Navratil joined Nestle in 2001, holding various roles in Central America and leading the coffee and beverage business in Mexico from 2013 to 2020. He later took charge of global strategy and innovation for the Nescafe and Starbucks brands. Appointed CEO of Nespresso in July 2024, he joined the Nestle board in January 2025.
“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance,” said Navratil, pledging to “drive the value creation plan with intensity.”
Freixe’s exit follows a pattern of high-profile dismissals in recent years over workplace relationships violating company policies. In 2023, Bernard Looney resigned as BP’s CEO for failing to disclose past relationships with colleagues. In 2019, Steve Easterbrook was removed as McDonald’s CEO for a “consensual relationship” with an employee, against company rules. In 2018, Brian Krzanich stepped down as Intel’s CEO over a “past consensual relationship” that breached the company’s non-fraternization policy.
What You Should Know
Nestle dismissed CEO Laurent Freixe on September 1, 2025, for an undisclosed romantic relationship with a subordinate, violating the company’s code of conduct, following an investigation led by chairman Paul Bulcke and Pablo Isla.
Philipp Navratil, former Nespresso CEO, was appointed as his successor to continue Nestle’s growth strategy. Freixe, a Nestle veteran since 1986, led the company through economic crises but faced challenges with a 10.3% profit drop in 2025 amid weak consumer spending.
Nestle’s shares, down nearly 25% last year, closed slightly up at 75.49 Swiss francs. This marks another high-profile executive exit due to workplace relationship violations, similar to cases at BP, McDonald’s, and Intel.
