Nestlé sacks CEO Laurent Freixe over undisclosed relationship with subordinate

New Delhi: Nestlé has dismissed its CEO, Laurent Freixe, after an investigation revealed an undisclosed romantic relationship with a direct subordinate, violating the company’s code of conduct. 

The decision, effective immediately, was announced Monday, September 1, 2025, marking a dramatic exit for Freixe, who had led the Swiss giant for just one year. 

Philipp Navratil, former head of Nestlé’s Nespresso unit, has been named his successor.

The investigation, triggered by a report through Nestlé’s whistleblowing channel, was overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with support from external legal counsel. 

The probe confirmed that Freixe, a 40-year company veteran, failed to disclose a consensual relationship with an employee who was not on the executive board, creating a conflict of interest. 

Nestlé stated that Freixe initially denied the relationship, and he will not receive an exit package.

“This was a necessary decision,” Bulcke said in a statement. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.” Bulcke, who announced in June that he will step down as chairman in 2026, emphasised that the company’s strategic direction will remain unchanged under Navratil’s leadership.

Freixe, 63, joined Nestlé in 1986 in France, rising through roles in sales, marketing, and regional leadership, including heading European operations during the 2008 financial crisis and later the Latin America division. 

Appointed CEO in September 2024 after the ousting of predecessor Mark Schneider, Freixe was tasked with reviving growth amid a 1.8% drop in half-year sales to 44.2 billion Swiss francs ($55 billion) reported in July 2025. His tenure was marked by efforts to bolster digital transformation and focus on key markets like China, but Nestlé’s share price has slumped nearly 25% over the past year, trailing rivals like Unilever and Danone.

Navratil, 49, who joined Nestlé in 2001 as an internal auditor, brings experience in the coffee sector, having led Nescafé’s global strategy and Nespresso since July 2024. He joined the executive board in January 2025. 

Freixe’s exit is the latest in a series of high-profile corporate departures over workplace relationships. Similar cases include McDonald’s CEO Steve Easterbrook in 2019, Intel’s Brian Krzanich in 2018, and BP’s Bernard Looney in 2023, all ousted for violating policies on employee relationships.