Nestlé Is Admitting It Fired Its CEO Over a Secret Relationship With a Subordinate
One of the world’s largest food companies removed its chief executive after only a year, and the business world has taken notice. Nestlé, the Swiss multinational behind Kit Kat, Purina, and Nespresso, announced that it dismissed CEO Laurent Freixe after discovering that he failed to disclose a romantic relationship with a direct subordinate. The move followed a whistleblower complaint that triggered an internal investigation.
Nestlé initially found no evidence, but after complaints persisted, a second review with outside counsel upheld the claims. The company said the dismissal was effective immediately and confirmed Freixe would not receive an exit package.
With Nestlé’s stock already down nearly 40% from its 2022 highs and sales slipping this year, the leadership shake-up adds even more uncertainty at a critical time.
How It All Came Out
Image via Canva/Lipik Stock Media
In early 2025, Nestlé’s internal “Speak Up” hotline received anonymous reports about CEO Laurent Freixe’s conduct. The audit committee of the board opened a preliminary inquiry, but that first review did not uncover evidence to support the allegations.
A few months later, additional complaints were filed through the same channel, prompting the whole board, chaired by Paul Bulcke and supported by independent director Pablo Isla, to order a second, more extensive investigation. For this round, Nestlé engaged external legal counsel to ensure independence and rigor.
That second inquiry confirmed that Freixe had an undisclosed romantic relationship with a Nestlé employee who was not part of the executive board. Since the relationship represented a conflict of interest under the company’s code of conduct, the directors concluded he had breached corporate policy.
Despite Freixe’s continued denials, the board voted to dismiss him. Nestlé emphasized that the entire process followed best-practice corporate governance standards.
A Career Cut Short
Freixe’s dismissal marked an abrupt end to nearly 40 years at Nestlé. He began in 1986 in France in marketing and sales before leading the Nutrition Division in 1999, and eventually served as regional CEO across Europe and Latin America. He was promoted to global CEO in September 2024, replacing Mark Schneider, only the second outsider in Nestlé’s history to hold the role.
Freixe presented himself as the consummate insider. In interviews, he openly criticized Schneider’s push into supplements and other non-core businesses, arguing it weakened the company. Instead, he promised to refocus on coffee, pet care, and food.
However, his tenure never gained momentum. In July 2025, Nestlé reported a 1.8% drop in half-year sales to 44.2 billion Swiss francs (about $55 billion).
The New Leadership
Philipp Navratil has now stepped into the CEO role. He joined Nestlé in 2001 as an internal auditor, then worked in Central America before moving into global leadership roles. By 2020, he was running the Coffee Strategic Business Unit, and in 2024, he became CEO of Nespresso.
Bulcke explained that the company’s strategy would not change under Navratil and reassured investors that performance goals remain intact. Navratil inherits a company under pressure: consumer demand has softened, Nestlé’s stock has fallen sharply since 2022, and the company is still trying to find its footing after pandemic highs.
At the same time, Nestlé announced that Bulcke himself will step down as chairman next year, with Isla proposed as his successor.
What It Means for Nestlé
Nestlé’s handling of Freixe’s dismissal sends a clear message about its priorities. It wants to protect the credibility of a company with 270,000 employees and more than a century and a half of history. By removing a CEO who denied wrongdoing but was found in breach of policy, Nestlé is reinforcing its code of conduct at the highest level.
The company now faces the challenge of proving stability under Navratil while navigating a more demanding market environment. How it balances leadership changes with the pressure to grow will determine whether this scandal fades quickly or continues to weigh on its reputation.