Nestle has dismissed its CEO Laurent Freixe after an internal investigation confirmed he was involved in an undisclosed romantic relationship with a direct subordinate breaching the company’s Code of Business Conduct.

The Swiss-based food giant announced the decision on Monday, September 2, 2025 ending Freixe’s tenure just one year after his appointment. Chairman Paul Bulcke described the move as a “necessary decision,” citing the company’s values and governance as “strong foundations” that could not be compromised.

Why Nestle Fired Laurent Freixe?

Freixe, 63, was appointed in September 2024 to replace former CEO Mark Schneider as Nestle faced slowing sales. But his career came to an abrupt end after the board led by Bulcke and Lead Independent Director Pablo Isla confirmed that his relationship with a junior colleague breached ethics rules.

Laurent Freixe

According to Reuters and Washington Post, Freixe will not receive any severance or exit package. The dismissal follows anonymous hotline complaints that triggered two separate internal reviews.

Who Is Philipp Navratil, New CEO?

Nestlé has appointed Philipp Navratil, the head of its Nespresso division as the new chief executive.

  • Joined Nestle in 2001 as an internal auditor
  • Led the coffee and beverage business in Mexico
  • Promoted to run Nespresso globally
  • Became executive board member on January 1, 2025

Navratil, 49, is widely regarded as a disciplined leader with a track record in turning around key divisions. His immediate task will be to stabilize investor confidence after a turbulent year of leadership changes.

Market Impact and U.S. Tariffs

Nestle shares slipped about 1% in Swiss trading following the announcement. Analysts warn that ongoing challenges including under performance in its vitamins and supplements segment could further weigh on investor sentiment.

Nestle

The company also faces potential pressure from the Trump administration’s 39% tariffs on Swiss imports which could impact sales of Nespresso machines and coffee. However, most other Nestle products for the U.S. market are manufactured locally.

Corporate Governance Under Scrutiny

Freixe’s dismissal mirrors other high-profile cases in global business. In 2023, BP CEO Bernard Looney resigned for failing to disclose workplace relationships ultimately losing over £32 million in pay and share awards. Similarly, earlier this year, Kohl’s ousted its CEO Ashley Buchanan after investigators linked him to a conflict-of-interest deal.

Such cases highlight growing corporate emphasis on ethics, transparency and disclosure of personal relationships with boards acting swiftly to protect company reputation.