Nestlé Fires CEO Laurent Freixe Over Undisclosed Romantic Relationship with Subordinate Employee
In a stunning development for the world’s largest food and beverage company, Nestlé has dismissed its CEO, Laurent Freixe, after an internal investigation revealed he had an undisclosed romantic relationship with a direct subordinate, breaching the company’s code of business conduct. The abrupt firing, announced on September 1, 2025, marks the second CEO ouster in just over a year for the Swiss multinational, which owns iconic brands like Nescafé, KitKat, and Purina. As shares remained stable amid the news, Nestlé quickly named longtime executive Philipp Navratil as Freixe’s replacement, vowing no disruption to its strategy or performance.
The Dismissal: Investigation and Immediate Impact
Details of the Breach
Nestlé’s board, led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, oversaw the probe with support from outside counsel. The investigation confirmed Freixe’s romantic involvement with a direct report, which he failed to disclose, creating a conflict of interest. The subordinate was not on the executive board, and the inquiry was triggered by a whistleblower report through the company’s internal channel. Freixe, 63, was dismissed with immediate effect and will receive no exit package, underscoring the severity of the violation.
“This was a necessary decision,” Bulcke stated. “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service.” The company emphasized that the move aligns with its strict policies on workplace relationships, similar to those enforced at peers like BP and McDonald’s.
Timeline of Freixe’s Tenure
Freixe, a Paris native, joined Nestlé in 1986 in France, rising through marketing and sales roles. He became head of the Nutrition Division in 1999 and later regional CEO for Latin America before his promotion to global CEO in September 2024. His one-year stint followed the ouster of predecessor Mark Schneider in August 2024, amid concerns over cultural fit and sluggish performance. Under Freixe, Nestlé refocused on core categories like coffee, petcare, and food, but sales growth lagged competitors.
Background: Nestlé’s Recent Leadership Turmoil and Company Challenges
A Pattern of CEO Changes
This is Nestlé’s second consecutive CEO firing in 13 months. Schneider, an outsider hired in 2017, was removed after seven years marked by diversification into health supplements, which Freixe later criticized as diluting the company’s strengths. Schneider’s tenure also drew backlash for continuing sales in Russia post-Ukraine invasion. Nestlé, headquartered in Vevey, Switzerland, has faced broader controversies, including a 2020 harassment lawsuit against former Chairman Bulcke, settled for $2.5 million. Former food safety inspector Yasmine Motarjemi, the plaintiff, commented on LinkedIn: “What hypocrisy! At Nestlé, you can harass your subordinates, but you can’t love them.”
Broader Corporate Context
The dismissal fits a trend of high-profile executives exiting over personal relationships. BP’s Bernard Looney resigned in 2023 for misleading the board on past colleague relationships, forfeiting £32 million. McDonald’s Steve Easterbrook was fired in 2019 for multiple staff affairs, later fined $400,000 by U.S. regulators. Intel’s Brian Krzanich stepped down in 2018 over a past consensual relationship. Kohl’s Ashley Buchanan was ousted in May 2025 after just 100 days for vendor ties linked to a personal relationship.
Nestlé’s challenges extend beyond leadership: First-half 2025 sales dropped 1.8% to 44.2 billion Swiss francs ($55 billion), hit by softening demand in China and rising costs for cocoa and coffee. Shares have fallen nearly 40% from 2022 highs, influenced by weight-loss drugs shifting consumer habits. Pension funds in Switzerland, heavy Nestlé investors, have voiced concerns.
Key Details and Verified Facts
Freixe’s career highlights include leading Nestlé’s coffee and beverage business in Mexico from 2013 and shaping global strategy for Nescafé and Starbucks brands. He joined the executive board in 2020.
Navratil, 48, started at Nestlé in 2001 as an internal auditor. His path: Country Manager for Honduras (2009), coffee leadership in Mexico (2013), global Coffee Strategic Business Unit (2020), and Nespresso CEO (July 2024). He joined the board in January 2025. “I fully embrace the company’s strategic direction,” Navratil said, committing to accelerate efficiency.
Nestlé, with 2024 sales topping $100 billion, holds a 20% stake in L’Oréal and relies on celebrity endorsements like George Clooney for Nespresso. The company reaffirmed no strategic shifts, focusing on growth in core areas.
Expert Opinions and Public Reactions
Corporate governance experts praise Nestlé’s swift action. “This reinforces zero-tolerance for conflicts of interest at the top,” said a University of Zurich business ethics professor. However, Motarjemi’s critique highlights perceived inconsistencies in handling misconduct.
On X and LinkedIn, reactions mix shock and commentary on workplace policies. One X post: “Nestlé CEO fired for romance—meanwhile, harassment cases drag on? Double standards?” Others support the board: “Good on Nestlé for upholding ethics; leadership starts at the top.” Shares rose 0.13% to 75.49 Swiss francs post-announcement, indicating market stability. Analysts at Reuters note this as part of 2025’s consumer goods reshuffles, alongside Unilever and Hershey.
Whistleblower advocates commended the internal reporting system, but some users questioned if the subordinate faces repercussions.
Impact on U.S. Readers: Economy, Lifestyle, and Corporate Culture
Economic Ties
For U.S. consumers and investors, Nestlé’s stability matters—its brands like Gerber, Purina, and KitKat dominate shelves, with $100 billion+ global sales. The leadership change could affect stock performance (NESN on Swiss exchange, traded via ADRs), but no immediate volatility suggests continuity. Amid inflation and health trends, Freixe’s refocus on staples aimed to counter rivals like Unilever, potentially influencing prices for everyday goods.
Lifestyle and Consumer Relevance
Americans rely on Nestlé products daily—from Nesquik for kids to Nespresso for coffee lovers. The scandal spotlights workplace romance policies, relevant in a #MeToo era where 40% of U.S. workers report office relationships. It may prompt companies to tighten disclosure rules, affecting professional lifestyles and HR practices. Politically neutral, it underscores global corporate accountability, with U.S. firms like McDonald’s facing similar scrutiny.
Broader impacts include heightened awareness of ethical governance, potentially boosting trust in brands if handled transparently, or eroding it if past issues resurface.
Conclusion: A Swift Transition Amid Ethical Reckoning
Nestlé’s dismissal of CEO Laurent Freixe over his undisclosed relationship with a subordinate reaffirms the company’s commitment to its code of conduct, even at the highest levels, following a thorough investigation. With Philipp Navratil stepping in as a proven internal leader, the firm signals stability and no strategic pivots, focusing on core growth amid economic headwinds. This event, the second CEO shake-up in quick succession, highlights evolving corporate standards on personal relationships and conflicts. For the future, Navratil’s tenure will be watched closely as Nestlé navigates sales slumps and consumer shifts. Investors and consumers can expect continuity, but the scandal serves as a reminder that ethical lapses carry swift consequences in today’s business world.