Food giant Nestlé announced Monday that it has fired its CEO over an inappropriate relationship with an employee.
Nestlé’s board of directors announced Laurent Freixe had been dismissed and will be replaced by Philipp Navratil.
Freixe’s ouster “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 news release on its website.
“This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé,” board chairman Paul Bulcke said.
WATCH: Nestle investors were pitched back into choppy waters after the Swiss food giant changed its CEO for the second time in a year, ousting boss Laurent Freixe over an affair he had with a subordinate https://t.co/40T3QV3cDq pic.twitter.com/Ion1TGTApi
— Reuters Business (@ReutersBiz) September 2, 2025
According to Reuters, the existence of a a possible relationship was first raised by employees in an internal Nestlé hotline.
The initial investigation found no substance to the rumors, which Freixe denied, Reuters reported.
The issue did not go away, leading the company to appoint Bulcke and lead independent director Pablo Isla to investigate, along with an independent outside counsel.
After 39 years with Nestlé, Freixe will get no exit package.
Freixe had replaced Mark Schneider, who was dismissed in August 2024.
“The loss of two CEOs and a chairman in a year is of historic proportions for Nestlé,” Ingo Speich, head of corporate governance and sustainability at Deka, a Nestlé investor, told Reuters.
“The new CEO needs to fix the business model and bring volumes back. He needs to do better M&A and focus more on emerging markets,” Speich said.
Swiss food giant Nestle has fired its Chief Executive Officer Laurent Freixe, with immediate effect. The dismissal follows an investigation into an ‘undisclosed romantic relationship with a direct subordinate’ that breached the company’s code of conduct#Nestle #CEO… pic.twitter.com/qDgQA4rIyS
— CNBC-TV18 (@CNBCTV18News) September 2, 2025
Reuters called Navratil “a rising star at the world’s largest food company as it battles slowing sales, the impact of U.S. tariffs and eroding investor confidence after years of underperformance.”
Nestlé, which is based in Switzerland, is the world’s largest food company, according to FoodIndustry.com. Its annual sales total almost $103 billion.
As noted by The Wall Street Journal, this is the second major CEO to depart his company in recent weeks after a relationship with a colleague was exposed.
Astronomer CEO Andy Byron had to step down after being romantic with a coworker in a video taken at a Coldplay concert.
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