Nestlé has dismissed Chief Executive Officer Laurent Freixe following revelations of a romantic relationship with a subordinate, throwing the Swiss food giant into its second leadership shake-up in just over a year.
The company announced late Monday that Freixe’s removal followed an internal investigation that found he breached Nestlé’s code of business conduct. He has been replaced by Philipp Navratil, a rising executive within the group.
The abrupt change adds to turbulence at the world’s largest food company, which has been struggling with weak sales performance and a steep decline in investor confidence. Nestlé shares have lost nearly a third of their value over the past five years, with an additional 17% slide recorded during Freixe’s tenure.
Freixe, who took charge following the ouster of his predecessor Mark Schneider last year, was seen as a stabilizing figure for the group. However, he failed to convince investors after sales volumes fell short of expectations in the first half of 2025, prompting a review of the company’s underperforming vitamins business in July.
“This latest change leaves big questions about Nestlé’s mid-term direction,” JPMorgan analysts said in a note, warning that the appointment of Navratil may not immediately reassure shareholders. “The equity story remains uncertain until we hear more about his plan.”
Market analysts described the upheaval as unusual for a company historically known for leadership stability. “This is not the Nestlé way, to have two CEO replacements in just over a year,” said Jon Cox, an analyst at Kepler Cheuvreux. “Hopefully this move will bring the company back on track.”
Freixe’s dismissal also comes months after chairman Paul Bulcke announced plans to step down in 2026, raising further questions about the direction of Nestlé’s leadership.
Despite hopes that Navratil will restore investor confidence, analysts cautioned that he may struggle to carve out his own path in the short term, with many of Freixe’s turnaround strategies still in motion.
Swiss newspapers reflected investor unease on Tuesday, with the Neue Zürcher Zeitung declaring that Nestlé had lost its “legendary stability,” once defined by long-serving leaders who typically rose to chairmanship after years at the helm.
