Nestlé fires CEO Freixe after undisclosed affair, appoints replacement

Nestle, the world’s largest food and beverage company, has dismissed its Chief Executive Officer Laurent Freixe after an internal investigation confirmed he failed to disclose a romantic relationship with a direct subordinate. The Swiss multinational announced on Monday that Philipp Navratil, a company veteran and head of its Nespresso unit, has been appointed as Freixe’s immediate successor.

According to Reuters, concerns first surfaced earlier this year when suspicions of a possible relationship between Freixe and a subordinate were raised via the company’s internal whistleblowing hotline. An initial inquiry proved inconclusive. However, as concerns persisted, the board—led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla—commissioned a second investigation with the support of an external law firm. This probe confirmed the relationship, which Freixe had initially denied to the board.

Nestle confirmed Freixe will not receive any exit package following his abrupt dismissal. “This was a necessary decision,” Bulcke said in a company statement. “Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service.”

The timing of the move has amplified the sense of instability at the Swiss food giant. Freixe’s exit comes exactly one year after Nestle parted ways with his predecessor Mark Schneider, a pattern that has unsettled investors already concerned by the company’s weak performance. Nestle shares have slipped 17% over the past year, underperforming rivals such as Unilever and Diageo, as well as the wider consumer goods sector.

Freixe’s removal also adds to a growing list of leadership scandals across global consumer companies. In May, US retailer Kohl’s fired CEO Ashley Buchanan after discovering he had pushed deals involving a vendor with whom he had a personal relationship. Similarly, in July, Andy Byron resigned as CEO of Astronomer after being caught on camera embracing a staff member at a public concert.

Nestle’s leadership is not immune to broader governance concerns in the sector. The company announced earlier this year that Chairman Bulcke would step down in 2026, setting the stage for further change at the top. Against this backdrop, investors are closely watching whether Navratil can restore confidence and maintain operational momentum amid mounting pressures, including softer consumer demand and the impact of US trade tariffs.

Navratil brings more than two decades of experience within Nestle, having joined as an internal auditor in 2001. He went on to hold leadership positions across Central America and Mexico before being appointed head of the company’s global coffee unit in 2020. Most recently, he led the Nespresso business, joining Nestle’s executive board in January this year.

While Nestle has stressed continuity in its long-term vision, the departure of two chief executives in as many years raises significant questions about governance, stability, and cultural adherence within one of the world’s most scrutinised multinationals. For shareholders, employees, and consumers alike, the scandal underscores how personal decisions at the top can ripple through an entire global organisation.