Nestlé sacks CEO over workplace affair

Nestlé has dismissed its chief executive Laurent Freixe with immediate effect following an investigation into an undisclosed romantic relationship with a direct subordinate.

The group, which supplies the hospitality industry through brands including Nestlé Professional and Nespresso Professional, said the relationship breached its code of business conduct.

Nestlé’s board came to that conclusion following an investigation overseen by chairman Paul Bulcke and lead independent director, Pablo Isla, with the support of independent outside counsel.

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."

Philipp Navratil has replaced Freixe as chief executive, having begun his career with Nestlé in 2001 as an internal auditor.

After holding various commercial roles in Central America, he was appointed country manager for Nestlé Honduras in 2009. In 2013, Navratil assumed leadership of the coffee and beverage business in Mexico, where he played a pivotal role in strengthening the Nescafé brand.

In 2020, he transitioned to Nestlé’s coffee strategic business unit, where he was responsible for shaping the global strategy and driving innovation for Nescafé and Starbucks coffee brands. He assumed a position at Nespresso in July 2024, where he has accelerated growth and built strong momentum, before joining the Nestlé executive board on 1 January this year.

Bulcke said: “Philipp is recognised for his impressive track record of achieving results in challenging environments. Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style. 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.”

Navratil added: "I am honoured by the trust the board has placed in me, and it is a privilege to take on the responsibility of leading Nestlé into the future. I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance. I look forward to working closely with the entire leadership of the company to accelerate execution and to drive the value creation plan with intensity.”

At the beginning of this year, Nestlé spun out its water and premium beverages activities to become a global standalone business as part of a £2.2b cost saving plan.