Swiss food giant Nestle has dismissed its CEO, Laurent Freixe, with immediate effect due to an undisclosed romantic relationship with a direct subordinate. The decision follows an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with support from independent outside counsel. Freixe, who joined Nestle in 1986 and rose through the ranks to become CEO in September 2024, has been a company veteran with nearly four decades of service.
The board’s decision to terminate Freixe’s employment highlights the importance of adhering to the company’s code of business conduct and maintaining professional relationships in the workplace. Philipp Navratil, the CEO of Nespresso, has been appointed as Freixe’s successor, effective immediately. Navratil, also a Nestle veteran, started his career with the company in 2001 and has held various leadership roles, including country manager for Nestle Honduras and global strategy lead for Nescafe and Starbucks brands.
The investigation into Freixe’s relationship was launched after allegations surfaced through Nestle’s “Speak Up” system, a channel for reporting concerns or misconduct. The board has emphasized that the leadership change will not affect the company’s strategic direction, and Navratil has pledged to drive Nestle’s performance and value creation plan with intensity. Freixe’s departure is the latest in a string of high-profile cases where executives have been let go over workplace relationships, including McDonald’s CEO Steve Easterbrook in 2019 and Intel’s Brian Krzanich in 2018.
