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Nestlé has dismissed Chief Executive Laurent Freixe after an internal probe found he engaged in an “undisclosed romantic relationship” with a direct subordinate, breaching the company’s code of conduct.
The Swiss food giant made the announcement on Sept. 1, while naming Philipp Navratil, head of Nespresso and a member of Nestlé’s executive board since January, as Freixe’s successor with immediate effect.
The decision followed “an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s Code of Business Conduct,” according to the company’s statement. The probe was ordered by Chairman Paul Bulcke with the support of outside counsel, with the company citing “best practice corporate governance” in pursuing the probe and acting on its findings.
“This was a necessary decision,” Bulcke said in the statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”
No details were provided on the romantic relationship, and Freixe has not publicly commented on his dismissal. The unexpected ouster adds to volatility for Nestlé, which reported weaker sales and slumping profits in the first half of the year, driven by softer consumer demand as the company hiked prices due to cost inflation in key product ingredients coffee and cocoa.
Freixe was appointed chief executive in September 2024 after nearly four decades at the company, including senior roles in Latin America and Europe. His tenure was marked by efforts to speed growth and efficiency, but also by headwinds from cost pressures and weaker demand in China.
Navratil, who is taking over, started with Nestlé as an internal auditor in 2001. After rising through the ranks in various roles, including shaping global strategy for Nescafé and Starbucks coffee brands, he joined the executive board at the beginning of 2025.
“I am honored by the trust the Board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future,” Navratil said in the statement. “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”
The leadership shake-up also comes as Nestlé is preparing for a broader transition at the top. Bulcke, a near-50-year veteran who led the group as CEO from 2008 to 2016 before becoming chairman, has said he will step down after the April 2026 annual meeting. The board has nominated Pablo Isla, the former Inditex chief executive and current Nestlé vice chairman, to succeed him.
Nestlé reported first-half sales of $50.5 billion, down 1.8 percent from a year earlier, as foreign-exchange headwinds and softer volumes weighed on results. Net profit fell 10 percent to about $5.7 billion, with margins pressured by higher coffee and cocoa costs.
Even so, Nestlé stuck to its full-year outlook and pointed to more than $220 million in sales from the launch of six new “big bets” products—including Nescafé Espresso Concentrate and Purina’s gourmet pyramid-shaped cat food launches—though it cited “increased macroeconomic risks and uncertainties” clouding the outlook.
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
