Nestle CEO Laurent Freixe Replaced Over Relationship Scandal With Employee
A photo of Laurent Freixe and a picture of Nestle's new CEO, Philipp Navratil IBT

Nestlé stunned the business world on Monday by abruptly firing its CEO Laurent Freixe, just one year after he took the helm of the Swiss food giant.

The dismissal followed an internal investigation that uncovered an undisclosed romantic relationship with a direct employee, a clear breach of the company's strict Code of Business Conduct.

The decision marked a dramatic shake-up at the top of one of the world's most recognisable brands. Nestlé confirmed that the move was triggered by concerns raised through its internal whistleblower system earlier this year, which prompted a second, conclusive probe into Freixe's conduct.

Chairman Paul Bulcke called the dismissal 'necessary' to safeguard the company's values and governance, while stressing that Nestlé's long-term strategy remains firmly on track despite the leadership upheaval.

Nestle CEO Laurent Freixe Fired

Laurent Freixe was informed of his immediate dismissal on 1 September 2025 after formal investigations confirmed his undisclosed relationship with a subordinate. Freixe initially denied the relationship during the inquiry, but the evidence eventually made it clear the company's code had been broken.

Unlike many executive departures, he received no exit package, according to Reuters. The move represents the second CEO change at Nestle within one year, following the abrupt exit of his predecessor Mark Schneider. This swift leadership change has generated industry talk about the company's stability and future direction.

Laurent Freixe's Relationship With an Employee

The investigation revealed Freixe's romantic involvement with a direct subordinate at Nestle. The employee's identity has not been disclosed publicly, ensuring privacy. The probe began after concerns surfaced via Nestle's 'Speak Up' internal hotline in spring 2025.

Despite an inconclusive initial stage, a renewed inquiry led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, supported by external lawyers, confirmed the inappropriate relationship. Company officials stressed the importance of enforcing ethical standards regardless of the executive's rank, making clear that undisclosed conflicts of interest will not be tolerated.

'This was a necessary decision. Nestlé's values and governance are strong foundations of our company,' Bulcke told Fox Business.

He added: 'I thank Laurent for his years of service at Nestlé.'

New Nestle CEO Appointed

Philipp Navratil, previously CEO of Nestle's Nespresso division, was appointed as the new Nestle CEO with immediate effect on the day of Freixe's dismissal.

Chairman Bulcke praised Navratil's 'impressive track record in challenging environments' and highlighted his 'dynamic presence' alongside a collaborative and inclusive leadership style.

The board expressed full confidence in Navratil's ability to advance growth plans and improve efficiency, while maintaining Nestle's current strategic course.

Philipp Navratil's Career

Navratil's journey at Nestle began in 2001 as an internal auditor, with assignments spanning Mexico, Japan, Honduras, and other countries. He progressed through various senior commercial roles, including Country Manager for Nestle Honduras in 2009 and heading the coffee and beverage business in Mexico from 2013.

In 2020, he took charge of Nestle's Coffee Strategic Business Unit, overseeing global strategy and innovation for brands such as Nescafé and Starbucks coffee. He became CEO of Nestle's Nespresso division in July 2024 and joined the company's Executive Board in January 2025.

Navratil is recognised for his strong people management, strategic thinking, and ability to inspire teams across multiple global markets.

Navratil's Promise to Nestle

Upon his appointment, Philipp Navratil expressed gratitude for the trust placed in him. He committed to supporting Nestle's established strategic direction and acceleration plans.

Navratil pledged to work closely with company leadership and the board, including Chairman Paul Bulcke and Chairman-Designate Pablo Isla, to expedite execution and enhance value creation. He reaffirmed that the company would stick to its strategy while pushing forward with growth and efficiency improvements.