Nestlé CEO Fired Over Secret Office Romance, Successor Named Immediately

Nestlé has abruptly dismissed CEO Laurent Freixe after failing to disclose a romantic relationship with a subordinate, the Swiss food giant announced Monday—marking a stunning leadership shake-up exactly one year after he took charge.

The company, maker of KitKat and Nesquik, swiftly appointed longtime insider Philipp Navratil, former head of Nespresso, as Freixe’s successor with immediate effect.

Freixe’s ouster adds fresh turmoil for Nestlé as it navigates a tough consumer climate and the fallout from U.S. trade tariffs.

According to Nestlé, the dismissal followed an investigation led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, which confirmed that Freixe had engaged in an undisclosed relationship with a direct subordinate—violating the company’s code of conduct.

“This was a necessary decision,” Bulcke said. “Nestlé’s values and governance remain the strong foundation of our company. We thank Laurent for his years of service.”

The scandal surfaced earlier this year after concerns were flagged through Nestlé’s internal hotline. An initial investigation proved inconclusive, but a second probe with outside assistance confirmed the relationship. Freixe initially denied the allegations, the company added.

Nestlé confirmed Freixe will not receive an exit package.

His removal comes one year after the departure of his predecessor, Mark Schneider, sparking renewed questions about the company’s direction despite assurances that its strategy and targets remain unchanged.

Analysts at JP Morgan warned the upheaval could “keep afloat the question mark about the mid-term direction of the company.”

Nestlé shares have dropped 17% over the past year, underperforming rivals and the broader market.

The shake-up is part of a broader trend of CEO scandals across global consumer goods firms. This year alone, Unilever, Diageo, and Hershey have faced leadership disruptions. In May, Kohl’s dismissed its CEO over an undisclosed relationship, while Astronomer CEO Andy Byron resigned in July after being filmed embracing a staff member at a Coldplay concert.

Navratil, who joined Nestlé in 2001 as an internal auditor, has risen steadily through the company ranks. He has held senior roles in Central America, Mexico, and global coffee operations before taking over Nespresso in 2024. He joined the executive board earlier this year, positioning him as a natural successor.