Nestlé Dismisses CEO Laurent Freixe Over Code Violation

Swiss food giant Nestlé announced on Monday the immediate dismissal of its CEO Laurent Freixe following an investigation into a relationship with a direct subordinate. The inquiry concluded that this undisclosed romantic involvement breached the company’s code of conduct, prompting the board’s decisive action.

Freixe, who held the CEO position for just over a year, will be succeeded by Philipp Navratil, a seasoned executive within the company. In a statement, Chairman Paul Bulcke emphasized the necessity of the decision, citing it as essential to uphold Nestlé’s strong governance and values.

Leadership Transition Amidst Internal Changes

The company did not disclose further details regarding the investigation. Freixe had a long tenure with Nestlé, joining the firm in 1986. He took on various roles globally, eventually becoming CEO of Zone Latin America following a restructuring in January 2022. In August 2024, he was promoted to replace then-CEO Mark Schneider, officially starting on September 1, 2024.

Navratil’s career with Nestlé began in 2001 as an internal auditor. He has served in several capacities, including leadership roles in Central America and the Coffee Strategic Business Unit. Most recently, he was the CEO of Nestlé’s Nespresso division prior to his new appointment.

This change comes amid a series of personnel shifts within the company. In June, Bulcke announced he would not seek reelection as chairman in 2026, and in April, Steve Presley, CEO of Zone Americas, confirmed his retirement after nearly three decades with Nestlé.

Challenges Facing Nestlé

Nestlé, headquartered in Vevey, Switzerland, is navigating several challenges that have affected the broader food industry, including rising commodity costs and the adverse effects of tariffs. In July, the company indicated it had managed to offset increased costs related to coffee and cocoa by implementing price hikes.

The recent leadership changes illustrate the company’s ongoing adjustments as it aims to maintain its market position and align with its core values. The focus moving forward will likely be on enhancing operational efficiency and addressing the economic pressures currently impacting the food sector.