Nestlé SA dismissed Chief Executive Officer Laurent Freixe after only a year due to an undisclosed workplace affair, extending the management turmoil at the world’s biggest food company that’s known for its conservative corporate culture.
An investigation showed that Freixe had an undisclosed romantic relationship with a direct subordinate that violated Nestlé’s code of conduct, according to a release late Monday from the Swiss owner of Purina pet supplies and KitKat chocolate bars. It named Philipp Navratil, who heads the Nespresso coffee brand, as his replacement.
“This was a necessary decision,” Chairman Paul Bulcke said in the statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”
The abrupt change extends a period of turbulence in Nestlé’s leadership. Freixe took over after the surprise ouster last year of Mark Schneider, who was let go due to sluggish performance during his nearly eight-year tenure. At the time, Freixe was seen as a safe pair of hands who would restore Nestlé’s traditional strengths after Schneider — a rare outsider in the top job — had taken the company in new directions.
“This comes at a sensitive juncture, as Nestle is already under the spotlight amid a negative news flow,” said Vontobel analyst Jean-Philippe Bertschy. “Nestlé should soon find calmer waters, as investors’ nerves have been tested for several months.”
Nestlé said its probe was overseen by Bulcke and the lead independent director, Pablo Isla, with the support of independent outside counsel. The company has nominated Isla to succeed Bulcke as chairman next year.
The matter involving Freixe was first brought to company officials’ attention through an internal system called “speak up,” according to a person familiar with the situation. After the allegations couldn’t be substantiated via an initial probe, further concerns were raised via the internal system and the investigation with external counsel was launched, according to the person familiar with the situation, who asked not to be identified discussing an internal matter.
Freixe will not receive an exit package, a spokesperson said.
Other Ousters
The ousted chief is the latest of several consumer and retail company bosses to lose their jobs over workplace relationships in recent years.
McDonald’s Corp. dismissed then-CEO Steve Easterbrook in 2019 after he had a consensual relationship with an employee, and in 2025 Kohl’s Corp. removed CEO Ashley Buchanan, who had directed millions of dollars of business to a romantic partner.
Freixe aimed to reignite growth and win over shoppers by boosting advertising spending and betting on fewer but bigger product initiatives. He also kicked off a strategic review of struggling vitamin brands and spun off Nestlé’s waters business into a standalone unit. However, he failed to regain investors’ trust, with Nestlé shares declining 17% under his tenure, compared with a roughly 5% decline for rival Unilever Plc.
Nestlé’s sales volumes contracted 0.4% in the second quarter.
New Chief
Navratil, a company veteran of more than 20 years, joined the executive board at the start of this year. Before running Nespresso, he was senior vice president and head of the Coffee Strategic Business Unit, where he was responsible for global strategy for the Nescafé brand and a licensing partnership with Starbucks.
“I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,” he said, according to Monday’s statement.
Navratil has the potential to accelerate long-term growth and look at portfolio restructurings such as an exit from lower-growth cereals and water, Bloomberg Intelligence’s Duncan Fox said in a note. As Navratil has yet to turn 50, he could see a 10-year-plus tenure, Fox added.
Another challenge for Nestlé is the global trade friction prompted by US President Donald Trump’s tariffs. Freixe has often pointed to the fact that some 90% of Nestle’s US-sold products are made domestically. One prominent exception is Nespresso capsules, which are exclusively produced in Switzerland and now face a 39% tariff.
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