BREAKING: Swiss food giant Nestlé has just announced the immediate dismissal of CEO Laurent Freixe due to an undisclosed romantic relationship with a direct subordinate, in a dramatic turn of events that raises questions about corporate governance. The board made this urgent decision following a thorough investigation overseen by chairman Paul Bulcke and lead independent director Pablo Isla.
In a swift and decisive move, Nestlé has appointed Philipp Navratil, the current CEO of Nespresso, as Freixe’s successor. The company released a statement confirming that the investigation revealed a breach of its code of business conduct. “This was a necessary decision,” Bulcke stated, emphasizing the importance of Nestlé’s values as foundational to the firm’s operations.
Freixe, a veteran of Nestlé since 1986, had only been in the CEO role since September 2024. He previously led the company’s European operations and the Latin America division. His leadership faced significant challenges, including a 10.3 percent drop in first-half profits reported in late July, as consumer spending struggled, particularly in China.
Nestlé’s share price closed at 75.49 Swiss francs on the Swiss stock exchange, reflecting a slight increase of 0.13 percent after the announcement. However, the company’s performance has been under scrutiny, especially following a major slump in share price last year, which raised concerns among Swiss pension funds heavily invested in the company.
Navratil, who joined Nestlé in 2001, has held various roles, including leading the coffee and beverage business in Mexico and overseeing global strategy and innovation for brands like Nescafé and Starbucks. As he steps into this pivotal role, he expressed confidence in continuing the company’s strategic direction. “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance,” Navratil stated, pledging to advance the value creation plan with vigor.
As this story develops, industry analysts and Nestlé stakeholders will closely monitor how Navratil navigates the challenges ahead, particularly in light of the company’s struggling sales and the urgent need for effective leadership. The focus now shifts to whether the new CEO can reverse the downward trend and restore confidence among investors and consumers alike.
Stay tuned for more updates on this breaking news story as it unfolds.
