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Nestlé CEO Laurent Freixe has been fired after being caught up in a secret romantic relationship with a direct subordinate. The company said this broke its rules on ethics and transparency.
Freixe had taken charge in September 2024 but lasted only a year. His dismissal marks the second time Nestlé has lost a chief executive within twelve months, creating one of the biggest leadership crises in the company’s history as Nestlé stock tumbled.
Concerns about the relationship first surfaced through Nestlé’s whistleblower system called Speak Up. At first, an internal review found nothing, but repeated complaints pushed the board to order a deeper investigation.
This inquiry, run with outside lawyers, confirmed the relationship. Freixe had denied the allegations to the board earlier. Nestlé confirmed he will not get an exit package despite serving the company for almost 40 years.
Philipp Navratil, the former head of Nespresso, has now been appointed as the new Nestlé CEO. He has worked across global operations and is seen as a strong insider choice to bring stability. Investors hope Navratil can restart growth, slim down the business, and improve performance in emerging markets.
Shares of Nestlé fell 0.8% in Zurich trading after the news broke. The company’s stock has already lost nearly a third of its value in five years and slid another 17% during Freixe’s short leadership. Many investors have voiced frustration and are demanding urgent business growth.
Chairman Paul Bulcke called Freixe’s removal “a necessary decision” to protect Nestlé’s values and governance. He thanked Freixe for his long service but made clear that ethics cannot be ignored at the top level.
The scandal puts Nestlé alongside other global giants like BP and McDonald’s, whose CEOs were also fired for hiding relationships with colleagues. Analysts believe Navratil must now win back investor trust, control costs, and push for stronger sales to secure the dividend that many rely on.
Nestlé is already reviewing its vitamins and supplements division after weak results. Industry watchers say Navratil may reset the company’s turnaround plan with new priorities.
The episode has shaken Nestlé’s long-standing image of stability, where CEOs usually stayed for many years. Now the world’s largest food company faces a new chapter under Navratil, with the challenge of restoring confidence while steering through tough markets.
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