Swiss multinational food and beverage giant Nestle has announced the immediate termination of its chief executive officer, Laurent Freixe, following revelations of an undisclosed romantic relationship with a direct subordinate. The company emphasized that the decision was made to preserve corporate integrity, uphold ethical standards, and reinforce governance principles that are central to Nestle’s operations globally.
In a statement addressing the termination, Nestle said, “This was a necessary decision. Nestle’s values and governance are strong foundations of our company. We are committed to maintaining these standards across all levels of the organization. We thank Laurent for his years of service and contributions to the company’s growth and success.”
Laurent Freixe, who joined Nestle in France in 1986, had held a variety of senior leadership roles over his decades-long career with the company. He became CEO in September 2024, after successfully leading Nestle’s European operations and later heading the Latin America division. His departure marks a significant leadership change less than a year into his tenure as CEO, reflecting the company’s strict adherence to ethical conduct and professional responsibility.
Following Freixe’s exit, Nestle’s board appointed Philipp Navratil, currently serving as CEO of Nespresso, as the new chief executive officer. Navratil, who joined Nestle in 2001, brings extensive experience in global operations, strategy, and innovation, having overseen leadership roles across Central America, the Nescafe and Starbucks brands, and most recently, directing Nespresso since July 2024. The board expressed confidence that Navratil would successfully continue Nestle’s growth trajectory while ensuring the company remains aligned with its core strategic objectives.
Chairman Paul Bulcke commented on the leadership transition, stating, “The board is confident that Philipp Navratil will drive our growth plans forward and accelerate efficiency efforts. Nestle’s strategic direction remains unchanged, and we will continue to prioritize performance while upholding our corporate values.”
Nestle has faced recent financial challenges, reporting a 10.3 percent drop in first-half profits in late July, attributed to sluggish consumer spending in China despite passing higher cocoa and coffee costs onto customers. The company’s share price also experienced a nearly 25 percent decline last year, raising concerns among Swiss pension funds and other major investors with significant stakes in Nestle’s performance. The board indicated that the leadership change is aimed at restoring confidence and driving long-term value creation for shareholders.
Navratil, upon assuming the role, pledged to maintain the company’s strategic vision and continue executing the ongoing value creation plan with determination and focus, emphasizing innovation, operational efficiency, and sustainability. He also reiterated his commitment to uphold Nestle’s ethical and governance standards across all levels of the company.
Headquartered in Vevey, Switzerland, on the shores of Lake Geneva, Nestle is a global leader in the food and beverage industry, known for a wide range of brands including Nespresso, KitKat, Purina, Maggi, Gerber, and Nesquik. The company employs hundreds of thousands worldwide and operates in multiple countries, consistently ranking among the largest and most influential food companies globally. With the new leadership in place, Nestle aims to navigate the evolving market challenges while continuing to deliver value to consumers, employees, and stakeholders alike.