Nestlé fires CEO Frexe due to romantic relationship with employee

　　Nestlé announced on Monday that it has dismissed CEO Laurent Freixe for failing to disclose a romantic relationship with a subordinate. This dramatic personnel change comes just one year after he took office.

　　The company stated that it has appointed senior insider Philipp Navratil to replace Freixe, effective immediately. Navratil previously headed the Nespresso coffee business unit.

　　Amid a challenging consumer environment and global threats of trade tariffs, this shocking personnel change may bring further uncertainty to Nestlé. The company had already announced in June that longtime chairman Paul Bulcke would step down next year.

　　Nestlé said that Freixe was dismissed following an investigation led by Bulcke and lead independent director Pablo Isla. The investigation found that he had an undisclosed romantic relationship with a direct subordinate, which violated the company's code of business conduct.

　　"This was a necessary decision," Bulcke said in a statement. "Nestlé's values and governance system are the solid foundation of the company. We thank Laurent for his years of service."

　　"Our strategic direction will not change, nor will the pace of our performance growth slow down."

　　As a company veteran, Freixe took over as CEO a year ago, succeeding former CEO Mark Schneider, who was dismissed by Nestlé.

　　This sudden departure is the latest in a series of management changes at global consumer goods and food companies this year, involving companies such as Nestlé's competitors Unilever, Diageo, and Hershey.

　　In May this year, Kohl's dismissed CEO Ashley Buchanan after an investigation found that, just over 100 days into his tenure, he had pushed for a deal with a supplier with whom he had a personal relationship.

　　Navratil joined Nestlé in 2001 as an internal auditor. After holding several commercial positions in Central America, he was appointed General Manager of Nestlé Honduras in 2009.

　　In 2013, he began overseeing coffee and beverage operations in Mexico, and in 2020, he was transferred to Nestlé's coffee strategic business unit.

　　In July 2024, he was transferred to Nespresso and joined the Nestlé Executive Board on January 1 this year.