Nestlé has dismissed chief executive Laurent Freixe with immediate effect following an investigation that found he had an undisclosed romantic relationship with a direct subordinate, breaching the company’s code of business conduct.

The Swiss food group said long-standing executive Philipp Navratil, most recently head of its Nespresso division, will take the helm.

Chair Paul Bulcke said the board had acted after a second, externally supported inquiry substantiated complaints first raised through Nestlé’s “Speak Up” whistle-blowing channel. “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company,” Bulcke said in a statement.

Freixe’s departure marks the second change at the top in just twelve months, following last year’s removal of predecessor Mark Schneider. The abrupt exit unsettled investors: Nestlé shares opened 2.5 per cent lower in Zurich on Tuesday, extending a decline of almost one third since 2022. Maurizio Porfiri, chief investment officer at trading firm Maverix, said the market wanted stability. “Another fresh start is needed, and it is time for more stability to return to the management at this global corporation,” he told Reuters.


The 159-year-old maker of KitKat chocolate bars and Purina pet food has faced other challenges this year. French authorities raided its bottled-water business in July over alleged unauthorised filtration practices, while a recall of frozen meals in the United States added operational strain. Nestlé is also reviewing its underperforming vitamins division after first-half sales fell short of expectations.

Freixe, who spent nearly four decades at the company and took the top job only a year ago, will receive no exit package. The statement did not disclose details of the investigation or identify the employee involved, and Freixe has not commented publicly.

Navratil joined Nestlé as an internal auditor in 2001 and has held senior roles across Latin America and the coffee portfolio. Bulcke said the board was “confident that he will drive our growth plans forward and accelerate efficiency efforts”.

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