Nestlé Replaces CEO Laurent Freixe After Policy Violation
Nestlé, the world’s largest food and beverage company, has removed its chief executive officer, Laurent Freixe, from his position. The company announced on Monday that Freixe was dismissed because he had a romantic relationship with an employee who reported to him. Nestlé said this went against its Code of Business Conduct.
The company also confirmed that Philipp Navratil, the current CEO of Nespresso, will take over as Nestlé’s new chief executive right away.
The Investigation and Decision
The dismissal of Freixe came after an internal investigation. This investigation was led by Paul Bulcke, Nestlé’s Chairman, and Pablo Isla, the Lead Independent Director, with help from outside legal experts. The team concluded that Freixe’s relationship with his subordinate broke company rules.
In a press statement, 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.”
Freixe’s Career at Nestlé
Laurent Freixe had worked at Nestlé for nearly 40 years. He first joined the Swiss company in the mid-1980s and rose through several leadership roles in Europe and Latin America. In August 2024, he was promoted to CEO, replacing Mark Schneider, who resigned after a period of weak sales. Freixe had only been in the top job for about a year before this sudden dismissal.
Despite his long service and experience, his time as CEO came to an abrupt end due to the policy breach.
Navratil Steps In
Philipp Navratil, who now becomes Nestlé’s new CEO, is also a long-time employee of the company. He joined Nestlé about 25 years ago and has held leadership positions in different markets, including Honduras and Mexico, where he managed the company’s coffee business. In July 2024, he was appointed CEO of Nespresso, Nestlé’s coffee brand known for its popular home-brewing machines.
Now, Navratil takes on the biggest role of his career as the head of the entire Nestlé group.
In his first statement as CEO, Navratil said, “I am honored 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.”
A Difficult Moment for Nestlé
The leadership change comes at a sensitive time for Nestlé. The company has been facing challenges in recent years, including slower sales growth and increasing competition from smaller, more agile food brands. Both Schneider’s resignation in 2024 and now Freixe’s dismissal show how much pressure the company is under to perform.
Still, Nestlé is emphasizing its commitment to strong values and ethical standards. By acting quickly and replacing Freixe, the company is trying to send a clear message that its rules and values apply to everyone, no matter how senior they are.
Looking Ahead
With Navratil as CEO, Nestlé is hoping to stabilize leadership and refocus on business growth. His experience in international markets and his recent success with Nespresso may help him guide Nestlé through its current challenges.
The coming months will be important for both Navratil and the company as they work to rebuild stability and strengthen Nestlé’s position in the global market.
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