In a dramatic turn of events that has rippled through the global food industry, Nestlé, the world’s largest food and beverage company, abruptly dismissed its chief executive officer Laurent Freixe on September 1, 2025, after an internal investigation revealed he had failed to disclose a romantic relationship with a direct subordinate—a violation of the company’s strict code of conduct. The shake-up comes at a sensitive time for the Swiss-based giant, which has been grappling with tough market conditions and mounting scrutiny over corporate governance.
The announcement, made late Monday by Nestlé’s board and reported by outlets including The Economic Times, Reuters, and USA TODAY, marks the second consecutive year in which a Nestlé CEO has been ousted. Freixe, who had only taken the helm in September 2024 following the departure of Mark Schneider, was removed exactly one year into his tenure. The board moved swiftly to appoint Philipp Navratil, a company veteran and most recently the head of the Nespresso coffee brand, as the new CEO effective immediately.
According to Reuters, concerns about Freixe’s conduct first surfaced in the spring of 2025 via an internal company hotline. Responding to these concerns, the board—led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla—initiated a formal investigation. The first probe, however, was inconclusive. As rumors persisted, a second inquiry was launched, this time with the help of an external firm. This investigation confirmed the existence of an undisclosed romantic relationship between Freixe and a direct report, a breach of Nestlé’s code of business conduct. Notably, Freixe had initially denied the relationship to the board, a fact that further complicated the proceedings.
Chairman Paul Bulcke addressed the matter in a statement, emphasizing the company’s unwavering standards: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said, as reported by The Economic Times and USA TODAY. The company also confirmed that Freixe will not receive an exit package following his dismissal, underscoring the seriousness of the breach.
The swift and public nature of Freixe’s removal highlights Nestlé’s commitment to upholding its internal policies, even at the highest levels of leadership. The incident also places Nestlé in the company of other major firms that have recently parted ways with top executives over personal conduct issues. Reuters pointed out similar cases, including the May 2025 firing of Kohl’s CEO Ashley Buchanan after an investigation found he had pushed for deals with a vendor with whom he had a personal relationship, and the July 2025 resignation of Astronomer CEO Andy Byron after being caught on camera embracing a staffer at a public event.
Freixe’s career at Nestlé spanned nearly four decades. A French citizen, he joined the company in 1986 in the sales and marketing division, working his way up through the ranks before assuming the top job in 2024. His appointment had come after the departure of Mark Schneider, who had been at the helm since 2017. The back-to-back exits of two CEOs in as many years have inevitably raised questions about the stability of Nestlé’s executive leadership and its trajectory moving forward.
As the dust settles, attention now turns to Philipp Navratil, who is tasked with steering the company through a challenging period. Navratil’s career at Nestlé began in 2001 as an internal auditor. He quickly rose through a series of commercial roles in Central America and was named country manager for Nestlé Honduras in 2009. By 2013, he was leading the coffee and beverage business in Mexico, and in 2020, he took charge of Nestlé’s Coffee Strategic Business Unit. In July 2024, Navratil moved to Nespresso, and he joined the executive board at the start of 2025. His appointment as CEO was made official on September 1, 2025, just as the news of Freixe’s dismissal broke.
Mark Schneider, Freixe’s predecessor, praised Navratil’s credentials and leadership qualities in a company release: “Philipp is recognized for his impressive track record of achieving results in challenging environments. Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. The Board is confident that he will drive our growth plans forward and accelerate efficiency efforts,” Schneider stated, as quoted by USA TODAY.
Navratil’s ascent to the top job comes at a time of significant headwinds for Nestlé. The company has faced a tough consumer environment, with inflation and shifting consumer preferences putting pressure on its broad portfolio of products, which range from Purina pet supplies to KitKat chocolate bars and Nesquik beverages. Additionally, ongoing U.S. trade tariffs have added to the volatility, complicating Nestlé’s efforts to maintain momentum in key markets.
The financial markets have not been kind to Nestlé in the past year. According to Reuters, the company’s shares have fallen 17% over the last twelve months, underperforming both its rivals and the broader market. The abrupt leadership change has only intensified speculation about the company’s mid-term direction. As JP Morgan analysts observed in a note to clients, “This new change is likely to keep afloat the question mark about the mid-term direction of the company.” Despite these concerns, Nestlé’s board has indicated that there will be no immediate changes to the company’s strategy or targets.
Corporate governance experts say the episode is a stark reminder of the increasing scrutiny top executives face—not just from boards and regulators, but also from employees and the public. In an era of heightened transparency and accountability, even the perception of impropriety can have serious consequences for individuals and organizations alike. For Nestlé, a company with a reputation for conservative corporate culture, the incident underscores the importance of living up to its own standards at every level.
As Navratil settles into his new role, he inherits the challenge of restoring stability and confidence, both inside and outside the company. The board’s decision to act decisively and transparently may help reassure investors and employees that Nestlé remains committed to its core values, even in turbulent times. The coming months will reveal whether Navratil can chart a steady course and revitalize the company’s fortunes in an increasingly complex global marketplace.
With a storied history and a portfolio that reaches into millions of households worldwide, Nestlé’s leadership transition is more than just a boardroom shuffle—it’s a high-stakes test of corporate governance, resilience, and the ability to adapt in a fast-changing world.
