Swiss food giant Nestlé has dismissed chief executive Laurent Freixe with immediate effect following an investigation into an undisclosed romantic relationship with a direct subordinate, the company announced Monday.

In a swift succession move, the board appointed Philipp Navratil, CEO of Nespresso, as the new chief executive.

Breach of conduct

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlé’s code of business conduct,” the company said in a statement.

The inquiry was overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with support from external counsel. “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” Bulcke said.

Freixe’s tenure

A Nestlé veteran, Freixe joined the company in France in 1986. He led its European business through the 2008 financial crisis, later heading the Latin America division before being elevated to CEO in September 2024. He was tasked with reviving consumer spending on the company’s wide range of products, including KitKat, Maggi, Purina, Gerber and Nespresso.

However, Nestlé’s performance has been under pressure. In July, the company reported a 10.3% drop in first-half profits amid sluggish demand in China, despite raising prices to offset higher cocoa and coffee costs. Its stock lost nearly a quarter of its value last year, sparking concern in Switzerland, where pension funds are heavily invested in the company.

Navratil steps in

Navratil, who joined Nestlé in 2001, has held leadership roles in Central America and Mexico, and later took charge of global strategy for the Nescafé and Starbucks brands. He became CEO of Nespresso in 2024 and joined Nestlé’s board earlier this year.

“The board is confident he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and will not lose pace on performance,” Bulcke said.

Navratil pledged to deliver on that promise: “I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance. I will lead with intensity to create value.”

Nestlé shares closed slightly higher on Monday, up 0.13% at 75.49 Swiss francs.

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