Nestlé CEO Laurent Freixe Ousted After One Year Over Undisclosed Workplace Relationship

ZURICH – Nestlé has dismissed its Chief Executive Officer, Laurent Freixe, after just one year in the top role, following an internal investigation into an undisclosed romantic relationship with a direct subordinate. The Swiss food giant confirmed Freixe's departure, citing a breach of the company's code of business conduct. This marks the second CEO change for Nestlé within a year, underscoring a period of significant leadership instability for the global conglomerate.

The investigation, overseen by Chairman Paul Bulcke and lead independent director Pablo Isla with external counsel, found that Freixe had maintained a relationship that violated company policy. According to reports, Freixe initially denied the relationship twice before evidence from his messages led to his immediate dismissal. Nestlé stated that Freixe will not receive an exit package following his departure.

"Laurent Freixe is out after just one year as Nestlé CEO for hiding a relationship with a direct report. He denied it. Twice. Nestlé dug through his messages, found proof, and hit eject. No golden parachute," stated a social media post by Mario Nawfal, highlighting the swift and decisive action taken by the company.

Philipp Navratil, previously the CEO of Nestlé's Nespresso unit, has been appointed as Freixe's successor. Navratil inherits a challenging environment, as Nestlé has been grappling with "bleeding sales" and a declining share price. Freixe's brief tenure saw the company's shares shed 17% of their value, failing to reverse previous performance trends.

The company's decision to remove Freixe follows the ousting of his predecessor, Mark Schneider, a year prior, further intensifying scrutiny on Nestlé's corporate governance. This situation parallels recent high-profile executive departures at other major corporations, such as BP and McDonald's, where leaders were also dismissed for failing to disclose relationships with colleagues. Observers note that such incidents suggest some executives still operate under the misconception that their actions go unobserved.