PR in the Philippines

Zurich, Switzerland, September 3, 2025 – Swiss multinational Nestle, renowned for its diverse range of popular sweet products like Nesquik and KitKat, has taken decisive action by abruptly removing CEO Laurent Freixe. This decision stems from his failure to disclose a romantic relationship with a direct subordinate. The announcement was made on Monday, marking the end of Freixe’s one-year tenure. Nestle has appointed Philipp Navratil, an experienced insider who previously led the Nespresso coffee division, as his replacement. Freixe’s departure introduces uncertainty amidst disruptive US trade tariffs that are already impacting the consumer market.

Laurent Freixe’s undisclosed relationship with his direct report constitutes a breach of the company’s code of business conduct. Chairman Paul Bulcke, together with Lead Independent Director Pablo Isla, are overseeing the investigation into the matter. Paul Bulcke stated, “Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” while emphasizing the necessity of the decision. It is also noted that Chairman Bulcke may step down next year, according to company statements.

Despite initially denying the relationship, the investigation confirmed its existence. The company has also stated that Freixe will not receive any severance package following his dismissal. This sudden removal of the CEO, occurring just a year after his predecessor Mark Schneider left, raises questions about the company’s overall stability. Nestle’s shares have reportedly fallen by approximately 17% in the market, as the company faces stiff competition. Philipp Navratil, who began his career at Nestle in 2001 and joined the executive board in January of this year, is currently seen as a steadying influence within the organization.