Swiss meals large Nestle on Monday dismissed Laurent Freixe as chief govt with instant impact over an “undisclosed romantic relationship with a direct subordinate”, AFP reported.
The multinational behind Nespresso espresso capsules and KitKat chocolate bars stated Freixe’s dismissal adopted an investigation.
In a swift transfer, Nespresso CEO Philipp Navratil was appointed to take over by his fellow board members.
“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestlés code of enterprise conduct,” a press release stated.
The board stated it had ordered an investigation overseen by chairman Paul Bulcke and lead unbiased director Pablo Isla, with the help of out of doors counsel.
“This was a needed resolution. Nestlé’s values and governance are robust foundations of our firm. I thank Laurent for his years of service,” Bulcke stated in a press release.
An organization veteran, Freixe joined Nestlé in France in 1986. He ran the agency’s European operations till 2014, steering them via the subprime and euro crises that started in 2008.
He headed the Latin America division earlier than his promotion as CEO.
Freixe had solely been within the high spot since a shock change in September 2024, entrusted with reversing smooth spending by shoppers for the corporate’s meals and family items.
Nestle’s share worth slumped by almost 1 / 4 final 12 months, elevating considerations in Switzerland, the place pension funds make investments closely within the firm, whose manufacturers additionally embrace Purina pet food, Maggi bouillon cubes, Gerber child meals and Nesquik chocolate-flavoured drinks.
Nestle shares closed up 0.13% at 75.49 Swiss francs on the Swiss inventory alternate.
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In late July, Nestle reported a ten.3% drop in first-half income because it struggled to show round its fortunes amid sluggish shopper spending in China, even because it handed on greater cocoa and occasional costs to shoppers.
New chief govt Navratil had been an govt vice-president at Nestlé, which is headquartered in Vevey on Lake Geneva.
“The board is assured that he’ll drive our development plans ahead and speed up effectivity efforts. We aren’t altering course on technique, and we is not going to lose tempo on efficiency,” insisted Chairman Bulcke.
Navratil began his profession with Nestlé in 2001 and took on varied roles in Central America, main the espresso and beverage enterprise in Mexico from 2013 to 2020, when he took over duty for international technique and innovation for the Nescafé and Starbucks manufacturers.
He grew to become chief govt of the Nespresso model in July final 12 months and joined the corporate board in January 2025.
“I absolutely embrace the corporate’s strategic route, in addition to the motion plan in place to drive Nestlé’s efficiency,” stated Navratil, pledging to “drive the worth creation plan with depth”.
