The world’s largest food company, Nestle, has terminated laurent Freixe‘s employment as chief executive after only a year, due to a workplace affair that was not disclosed. This move has added to the management instability at the company, which is known for its traditional corporate culture.

According to a statement released on Sept 1, an investigation revealed that Mr Freixe had a romantic relationship with a direct subordinate, which violated Nestle‘s code of conduct. mr Philipp Navratil,who is the head of the Nespresso coffee brand,has been named as his replacement.

Mr Freixe assumed the role after the unexpected departure of Mr Mark Schneider in 2024,who was dismissed due to poor performance during his nearly eight-year tenure.At the time,Mr Freixe was considered a reliable choice who would restore Nestle‘s traditional strengths,after Mr Schneider,an outsider in the top position,had led the company in new directions.

vontobel analyst Jean-Philippe Bertschy stated, “This comes at a sensitive juncture, as Nestle is already under the spotlight amid a negative news flow. Nestle shoudl soon find calmer waters, as investors’ nerves have been tested for several months.”

Investigation Details

“This comes at a sensitive juncture, as Nestle is already under the spotlight amid a negative news flow,”

According to a source familiar with the situation, the issue involving mr Freixe was initially brought to the attention of company officials through an internal system called “speak up”. After the allegations could not be substantiated through an initial investigation, further concerns were raised via the internal system, and an investigation with external counsel was initiated.

A spokesperson confirmed that Mr Freixe will not receive an exit package.

Similar Incidents

Mr Freixe is the most recent of several top business executives who have been forced to leave their positions in recent years due to relationships with colleagues that were found to be in violation of internal regulations.

In 2023, Mr bernard looney unexpectedly resigned as CEO of British energy company BP because he failed to disclose past relationships with colleagues.

Mr Steve Easterbrook was removed as CEO of McDonald’s in 2019 for having a “consensual relationship” with an employee, which violated company policy.

A year prior, mr Brian Krzanich stepped down as CEO of US computer chip company Intel due to a “past consensual relationship” with an employee, which violated the company’s non-fraternisation policy.

Mr Freixe aimed to stimulate growth and attract customers by increasing advertising spending and focusing on fewer but more notable product initiatives. He also initiated a strategic review of struggling vitamin brands and separated Nestle‘s waters business into a separate unit. Though, he was unable to regain investors’ confidence, with Nestle shares falling by 17 percent during his tenure, compared to a roughly 5 percent decline for competitor Unilever.

Nestle‘s sales volumes decreased by 0.4 percent in the second quarter of 2025.

New Leadership

Mr Navratil,a company veteran of over 20 years,joined the executive board at the beginning of 2025. Prior to leading Nespresso, he served as senior vice-president and head of the coffee strategic business unit, were he oversaw global strategy for the Nescafe brand and a licensing partnership with Starbucks.

Bloomberg Intelligence‘s Duncan Fox noted that Mr Navratil has the potential to accelerate long-term growth and consider portfolio restructurings, such as divesting from slower-growing cereals and water. Mr Fox added that, as Mr Navratil is not yet 50, he could have a tenure of 10 years or more.

Another challenge for Nestle is the global trade friction caused by US President Donald Trump‘s tariffs. Mr Freixe frequently enough emphasized that approximately 90 percent of Nestle‘s US-sold products are manufactured domestically. A notable exception is Nespresso capsules, which are exclusively produced in Switzerland and now face a 39 percent tariff.