Nestle sacks CEO over office relationship
Source: AFP
Swiss food giant Nestle on Monday dismissed Laurent Freixe as chief executive with immediate effect over an "undisclosed romantic relationship with a direct subordinate".
The multinational behind Nespresso coffee capsules and KitKat chocolate bars said Freixe's dismissal followed an investigation.
In a swift move, 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 Nestle's code of business conduct," a statement said.
The board said it had ordered an investigation overseen by chairman Paul Bulcke and lead independent director Pablo Isla, with the support of outside counsel.
"This was a necessary decision. Nestle's values and governance are strong foundations of our company. I thank Laurent for his years of service," Bulcke said in a statement.
Source: AFP
A company veteran, Freixe joined Nestle in France in 1986. He ran the firm's European operations until 2014, steering them through the subprime and euro crises that began in 2008.
He headed the Latin America division before his promotion as CEO.
Freixe had only been in the top spot since a surprise switch in September 2024, entrusted with reversing soft spending by consumers for the company's food and household goods.
Nestle's share price slumped by nearly a quarter last year, raising concerns in Switzerland, where pension funds invest heavily in the company, whose brands also include Purina dog food, Maggi bouillon cubes, Gerber baby food and Nesquik chocolate-flavoured drinks.
Nestle shares closed up 0.13 percent at 75.49 Swiss francs on the Swiss stock exchange.
Net profits
Source: AFP
In late July, Nestle reported a 10.3-percent drop in first half profits as it struggled to turn around its fortunes amid sluggish consumer spending in China, even as it passed on higher cocoa and coffee prices to consumers.
New chief executive Navratil had been an executive vice-president at Nestle, which is headquartered in Vevey on Lake Geneva.
"The board is confident that he will drive our growth plans forward and accelerate efficiency efforts. We are not changing course on strategy and we will not lose pace on performance," insisted chairman Bulcke.
Source: AFP
Navratil started his career with Nestle in 2001 and took on various roles in Central America, leading the coffee and beverage business in Mexico from 2013 to 2020, when he took over responsibility for global strategy and innovation for the Nescafe and Starbucks brands.
He became chief executive of the Nespresso brand in July last year and joined the company board in January 2025.
"I fully embrace the company's strategic direction, as well as the action plan in place to drive Nestle's performance," said Navratil, pledging to "drive the value creation plan with intensity".
Source: AFP
