Nestle Fires CEO Over Undisclosed Romantic Relationship

Nestlé has removed its chief executive, Laurent Freixe, with immediate effect after an internal investigation revealed he had engaged in an “undisclosed romantic relationship with a direct subordinate.”

The Swiss food giant, known worldwide for brands like Nespresso coffee capsules and KitKat chocolate bars, confirmed the dismissal on Monday. The board moved quickly to appoint Nespresso CEO Philipp Navratil as his successor.

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s code of business conduct,” the company said in a statement.

The probe was overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with support from external legal advisers. Bulcke defended the decision, stressing that company values and governance could not be compromised.

“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” he stated.

Freixe, a company veteran who joined in France in 1986, had risen through the ranks, running European operations through the subprime and euro crises before taking over the Latin America division. He was promoted to CEO in September 2024, tasked with reviving consumer spending on Nestlé’s food and household goods.

But challenges mounted. Nestlé’s share price plunged nearly 25 percent last year, sparking concern in Switzerland, where pension funds are heavily invested in the firm. The company reported a 10.3 percent drop in first-half profits in July, pressured by sluggish consumer demand in China and soaring cocoa and coffee costs.

Despite those setbacks, shares closed slightly higher on Monday, gaining 0.13 percent to 75.49 Swiss francs on the Swiss exchange.

Navratil, who takes over as CEO, is no stranger to the company’s global operations. Starting with Nestlé in 2001, he held senior roles in Central America and Mexico before leading global strategy for Nescafé and Starbucks. He became chief executive of Nespresso in 2024 and joined the board in January 2025.

“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,” Bulcke said.

Navratil pledged to stay the course on the company’s turnaround plan. “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,” he said, adding that he intends to “drive the value creation plan with intensity.”

Freixe now joins a growing list of global executives forced out over workplace relationships. BP’s Bernard Looney resigned in 2023 for failing to disclose past relationships, McDonald’s Steve Easterbrook was dismissed in 2019 for a consensual relationship with an employee, and Intel’s Brian Krzanich stepped down in 2018 over a similar policy violation.