Nestlé has made a sudden leadership change, announcing the dismissal of its chief executive, Laurent Freixe, following revelations about a relationship with someone who worked directly under him.
The company said the decision came after an internal investigation confirmed a breach of its code of conduct. Stepping in immediately is Philipp Navratil, who had been leading Nespresso before being elevated by the board.
“This was a necessary step. Our values and governance remain the foundation of Nestlé,” said chairman Paul Bulcke, while also acknowledging Freixe’s decades of service to the company.
Freixe, who began his Nestlé career in France in 1986, rose through the ranks, overseeing operations across Europe and later Latin America before being tapped as CEO in September 2024. His task was to revive consumer spending after a difficult stretch that had shaken investor confidence.
Despite his long history with the company, challenges persisted. Nestlé’s profits dropped in the first half of this year, and its stock value slid sharply in 2024, alarming pension funds heavily invested in the brand.
Navratil, who has been with Nestlé since 2001, has worked across multiple regions, including Central America and Mexico, and later spearheaded global coffee strategy for brands like Nescafé and Starbucks. He was appointed CEO of Nespresso in mid-2024 and joined the main board earlier this year.
Expressing confidence in his new role, Navratil said he intends to “intensify performance efforts and stay true to the company’s direction.”
Freixe now joins a list of prominent business leaders forced to step down in recent years due to workplace relationships, including former heads of BP, McDonald’s, and Intel.
