By Els William
Swiss food behemoth Nestlé has dismissed its Chief Executive, Laurent Freixe, after just one year in the role.
The move follows an internal investigation that confirmed an undisclosed romantic relationship with a direct subordinate—a clear breach of the company’s code of conduct.
The affair was brought to light via Nestlé’s internal “Speak Up” hotline and multiple whistleblower reports. Initially, an internal inquiry found no wrongdoing. However, a second, deeper investigation overseen by the board—helped by external counsel—revealed that the relationship did occur, prompting the board to act. Freixe, who had denied the affair during both investigations, was summarily removed with no exit package.
Philipp Navratil, the long-time head of Nespresso, has been tapped as Freixe’s successor. The 49‑year‑old Nestlé veteran, elevated to the executive board earlier this year, brings a reputation for operational discipline and strategic focus. CFO Anna Manz praised his record of simplification and execution.
The swift leadership change compounds instability at Nestlé: it marks three CEO transitions in a year, not to mention the impending departure of long-serving Chairman Paul Bulcke in 2026, and earlier changes across other senior posts. Investor confidence has been rattled; in early trading, Nestlé’s share price dipped as much as 1.9%.
Freixe’s brief tenure also delivered disappointing financials—with Nestlé’s shares falling 17% under his watch and sales volumes slipping. Underlying pressures such as rising debt, underperforming segments (notably vitamins and water), and broader industry challenges like inflation and U.S. tariffs have escalated calls for major restructuring.
Analysts view the new CEO’s mandate as clear: execute a sweeping corporate reset by slimming the bloated product portfolio, boosting operational agility, and igniting long-stalled growth—especially in emerging markets. One expert suggested a split-up of Nestlé’s sprawling empire may even be on the table if performance doesn’t improve.