Swiss food and beverage giant Nestle has announced the immediate removal of its chief executive, Laurent Freixe, following reports of an undisclosed romantic relationship with a direct subordinate.
The company described the move as essential to uphold its corporate values and governance standards.
“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” the company stated.
Freixe, a long-time Nestle executive who joined the company in France in 1986, had been CEO since September 2024. Before his promotion, he led Nestle’s European operations and oversaw the Latin America division.
In his place, Nestle’s board has appointed Philipp Navratil, current CEO of Nespresso, as the new chief executive. Navratil, who joined Nestle in 2001, has held leadership roles across Central America and globally, managing strategy and innovation for Nescafe and Starbucks brands before taking the helm at Nespresso in July 2024.
Chairman Paul Bulcke expressed confidence in Navratil’s leadership, stating, “The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance.”
The leadership change comes as Nestle reported a 10.3 percent decline in first-half profits in July, citing weak consumer spending in China, despite passing higher cocoa and coffee costs to customers. The company’s share price fell nearly 25 percent last year, raising concerns among Swiss pension funds with heavy Nestle holdings.
Navratil pledged to continue Nestle’s strategic direction and execute its ongoing value creation plan with focus and determination.
Headquartered in Vevey on Lake Geneva, Nestle is globally recognized for brands including Nespresso, KitKat, Purina, Maggi, Gerber, and Nesquik.
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It’s always knacking that brings them down. Avoid it, they won’t
No chill
He should know better