Nestle fires CEO Laurent Freixe over ‘romantic relationship’ with employee

Nestle appointed veteran Philipp Navratil, who earlier led the Nespresso coffee unit, as Freixe’s successor with immediate effect. The sudden departure of Freixe threatens a rising volatility for the company amid a tough consumer environment and uncertainty over US trade tariffs.

According to a BBC report, the inquiry was ordered based on a report filed through Nestle’s whistleblowing channel. Freixe took over the role of CEO in September last year after the company ousted his predecessor, Mark Schneider.

In a statement, Nestle Chairman Paul Bulcke said, “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company. I thank Laurent for his years of service at Nestlé.”

The alleged relationship of Freixe was with an employee who wasn’t part of the executive board and the probe was launched as it represented a conflict of interest, BBC reported.

According to a Nestle spokesperson, “We acted at all times in line with best practice corporate governance. The external investigation was opened shortly after the initial internal investigation, and today’s decision shows that we are taking allegations and investigations seriously.”

Nestle had announced in June that Bulcke, its long-standing chairman, would stand down next year. Meanwhile, Freixe had been associated with Nestle for the past 40 years but the company has confirmed that he will not receive an exit package.

The conduct of the top management has come under intense scrutiny, especially in the US, after Astronomer CEO Andy Byron, who resigned in July, was caught on camera embracing a staffer at a Coldplay concert.