20250904

Nestle Dismisses CEO Over Office Romance

Nestlé Ousts CEO Laurent Freixe Over Undisclosed Office Romance

In a dramatic shake-up at the helm of one of the world’s largest food and beverage companies, Nestlé has dismissed its Chief Executive Officer, Laurent Freixe, following revelations of an undisclosed romantic relationship with a direct subordinate. 

The Swiss multinational announced the decision on September 1, 2025, stating that the relationship violated the company’s code of business conduct and governance standards.

Freixe, a Nestlé veteran who joined the company in France in 1986, had only recently assumed the CEO role in September 2024. His tenure was marked by efforts to reverse sluggish consumer spending and address declining profits, particularly in key markets like China. Despite his long-standing contributions, the board concluded that his breach of internal policies necessitated immediate action. Chairman Paul Bulcke emphasized that the dismissal was a “necessary decision,” reaffirming Nestlé’s commitment to ethical leadership and corporate integrity.

The investigation into Freixe’s conduct was overseen by Bulcke and lead independent director Pablo Isla, with support from external counsel. The company did not disclose the identity of the subordinate involved, but confirmed that the relationship was in direct violation of Nestlé’s strict code of conduct, which prohibits undisclosed romantic entanglements between executives and their subordinates.

In a swift transition, Philipp Navratil, previously CEO of Nestlé’s Nespresso division, was appointed as Freixe’s successor. Navratil, who began his career with Nestlé in 2001, has held various leadership roles across Central America and global strategy units. His appointment signals continuity in Nestlé’s strategic direction, with the board expressing confidence in his ability to drive growth and operational efficiency.

Freixe’s dismissal places him among a growing list of high-profile executives ousted over workplace relationships, reigniting debates about the effectiveness of corporate policies on office romance. As Nestlé navigates this leadership change, the company remains focused on stabilizing its financial performance and upholding its reputation as a global leader in ethical business practices.

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