Nestlé CEO sacked! Laurent Freixe dismissed over ‘undisclosed romantic relationship’ with subordinate; ‘necessary’ decision

Swiss food giant Nestlé on Monday sacked its chief executive, Laurent Freixe, with immediate effect after an investigation found he had an “undisclosed romantic relationship with a direct subordinate”, in breach of the company’s code of business conduct.Freixe, who joined the firm in 1986, had only been promoted to CEO in September 2024 after leading its Latin America division.Freixe’s exit places him among a growing list of high-profile business leaders forced out over workplace relationships. As per AFP, similar departures include BP’s Bernard Looney in 2023 and McDonald’s Steve Easterbrook in 2019, who were both removed for failing to disclose relationships with colleagues.The company announced that Nespresso chief Philipp Navratil will take over the role.According to news agency AFP, Nestlé’s board launched an inquiry overseen by chairman Paul Bulcke and lead independent director Pablo Isla, supported by external counsel.“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 board said in a statement.Bulcke called the decision “necessary”, adding, “Nestlé's values and governance are strong foundations of our company. I thank Laurent for his years of service.”As per The Guardian, Freixe replaced Mark Schneider last year in a surprise switch, tasked with reviving sluggish consumer demand. Nestlé has faced challenges, including falling profits and weak spending in China, while also passing on higher raw material costs to shoppers.The company’s shares dropped nearly a quarter in 2024 but closed slightly higher on Monday at 75.49 Swiss francs.Navratil, who began his career with Nestlé in 2001, rose through senior roles in Central America and Mexico before leading the Nescafé and Starbucks brands globally. He became Nespresso CEO in 2024 and joined the executive board in January 2025.According to Axios, the board praised him for “achieving results in challenging environments” and said he would “accelerate efficiency efforts” without altering Nestlé’s current strategy.