Swiss food giant Nestle has made a swift leadership change following revelations of a hidden workplace relationship. Laurent Freixe, who had been CEO for less than a year, was dismissed immediately. Here’s everything you need to know about the situation, the investigation, and the new leadership at Nestle.

1. CEO Dismissal Over Workplace Misconduct

Nestle confirmed that Laurent Freixe was removed as CEO due to an “undisclosed romantic relationship with a direct subordinate.” The termination followed a detailed internal investigation, reflecting Nestle’s strict commitment to corporate ethics and governance.

Chairman Paul Bulcke emphasized, “This was a necessary decision. Nestle’s values and governance are strong foundations of our company.” The board stated that the move was essential to maintain ethical standards and corporate integrity while ensuring leadership stability.

2. Investigation and Board Oversight

The board ordered the investigation under the supervision of:

Chairman Paul Bulcke

Lead independent director Pablo Isla

The inquiry was supported by external legal counsel, and the findings confirmed that Freixe had violated the company’s code of business conduct. This decisive action underlines Nestle’s zero-tolerance policy for ethical breaches, even at the highest levels.

3. Freixe’s Career at Nestle

Laurent Freixe had a long tenure at Nestle, starting in france in 1986. Key milestones include:

Leading European operations until 2014, navigating the subprime and eurozone crises

Heading Latin America operations before his promotion to CEO in september 2024

Freixe’s mandate was to revive Nestle’s growth amid weak consumer spending, especially for brands like KitKat, Maggi, and Nespresso. However, despite his efforts, the company’s share price dropped nearly 25% last year, raising concerns among swiss pension funds and investors.

4. Market Struggles and Performance Concerns

During Freixe’s tenure, Nestle faced several challenges:

Weak consumer spending in key markets, particularly China

Rising input costs including cocoa and coffee

A reported 10.3% drop in first-half net profits in July 2025

These struggles highlighted the need for strong, decisive leadership capable of steering Nestle back to growth while managing market volatility.

5. Philipp Navratil: The New CEO

Following Freixe’s dismissal, Philipp Navratil has been appointed as Nestle’s new chief executive. Key details about Navratil:

Joined Nestle in 2001, with experience in Central America and Mexico

Led coffee and beverage operations, including Nescafe and Starbucks brands

Became CEO of Nespresso in July 2024 and joined the Nestle board in january 2025

Navratil stated, “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestle’s performance.”

6. What to Expect Under Navratil’s Leadership

Navratil inherits a company navigating sluggish consumer demand and rising production costs. Key focus areas for him will likely include:

Reviving sales in China and other key markets

Strengthening the performance of premium brands such as Nespresso

Enhancing innovation and strategic initiatives to sustain growth

Restoring investor confidence after recent setbacks

Chairman Bulcke expressed confidence that Navratil’s experience and strategic vision will help Nestle overcome current challenges and achieve its growth targets.

7. Nestle’s Commitment to Governance

The quick CEO replacement underscores Nestle’s commitment to:

Upholding ethical standards

Transparent corporate governance

Ensuring stability in top management despite unexpected disruptions

The company’s proactive response signals that no executive, regardless of position, is above the code of conduct, reinforcing trust among investors, employees, and the public.

Conclusion: A New Chapter for Nestle

Nestle’s swift action in terminating Laurent Freixe and appointing Philipp Navratil demonstrates the company’s prioritization of ethics, stability, and growth. With a seasoned leader at the helm, Nestle aims to navigate market challenges, revive sales, and implement strategic initiatives, all while upholding its long-standing reputation as a globally trusted food and beverage giant.