Nestlé fires CEO Laurent Freixe after investigation into romantic relationship with direct subordinate
Sep 3, 2025
Key Points
- Nestlé fires CEO Laurent Freixe with immediate effect after an investigation confirms he had a romantic relationship with a direct subordinate that violated company code of conduct.
- Freixe, hired in September 2024 as Nestlé's first outsider CEO in over a century, lasted less than a year before the relationship surfaced through an anonymous hotline tip.
- Philip Novrottle takes over as Freixe's successor while Nestlé navigates sluggish sales and leadership instability in the midst of a broader turnaround effort.
Summary
Nestlé fired CEO Laurent Freixe with immediate effect after an investigation found he had a romantic relationship with a direct subordinate that violated the company's code of conduct. Board chairman Paul Bulck and independent director Pablo Isla, with support from outside counsel, determined the relationship breached governance standards.
Freixe, 63, joined Nestlé in 1986 and became CEO in September 2024, less than a year before his dismissal. He was the first outsider to run the company since 1922, brought in to revive growth after Mark Schneider's underperformance. During his brief tenure, Freixe had started refocusing the company on core brands and cutting costs to reinvest in stronger performers like cold coffee.
An anonymous tip to Nestlé's internal hotline, "Speak Up," exposed the relationship. The couple initially denied involvement. Two formal investigations, additional hotline reports, and a letter to the board chairman were required before the company acted.
Philip Novrottle, a Swiss executive, succeeds Freixe. He inherits a company dealing with sluggish sales, ongoing divestitures of underperforming businesses, and now leadership instability that compounds an already difficult turnaround.