Nestlé dismissed Chief Executive Officer Laurent Freixe on Monday after an investigation revealed he failed to disclose a romantic relationship with a subordinate, marking the Swiss food giant’s second leadership change in just over a year.
The world’s largest food company immediately appointed Philipp Navratil, head of its Nespresso division, as the new CEO following Freixe’s dismissal for breaching the company’s Code of Business Conduct.
Nestlé announced the leadership change on September 2, 2025, stating that Freixe was dismissed after a code of conduct breach involving an inappropriate workplace relationship. The dismissal comes after just one year in the top role, throwing the company into what industry observers describe as its deepest leadership chaos in decades.
“This was a necessary decision,” said Chairman Paul Bulcke, emphasizing the company’s commitment to maintaining corporate governance standards.
Freixe, a 39-year Nestlé veteran who worked his way up through regional leadership roles, received no severance package following his dismissal. The company conducted an independent investigation that confirmed the breach of conduct policies.
Navratil, who has been with Nestlé since 2001, brings extensive experience in the company’s coffee operations and cost efficiency programs. He previously led the “Fuel for Growth” savings initiative and is recognized for his expertise in digital transformation and premium coffee market strategies.
The leadership upheaval adds to ongoing challenges facing the company, which has grappled with rising input costs across key commodities including cocoa, coffee, and dairy products. Nestlé’s revenue declined 1.75% to 91.72 billion in 2024, while earnings dropped 2.90% to 10.88 billion.
This dismissal represents the second high-profile corporate executive removal this year over undisclosed workplace relationships, following similar cases across various industries.
The timing proves particularly challenging for Nestlé, which faces structural pressures from elevated commodity costs and evolving consumer preferences. Cocoa prices have remained near historic highs, hovering around $7,500-$7,800 per tonne, while coffee costs have also pressured margins across the company’s key product lines.
Navratil’s immediate priorities will include restoring investor confidence, maintaining strategic continuity, and addressing operational challenges that have weighed on the company’s performance. His background leading Nespresso positions him well to leverage the company’s coffee portfolio, which represents a significant profit driver.
The company has been working to recover advertising and marketing spend, which fell to 6.6% of sales in 2022 but recovered to 8.1% in 2024, with plans to reach 9% by end-2025.
The leadership change occurs ahead of Nestlé’s third-quarter earnings announcement scheduled for October 16, 2025, where Navratil will face his first test addressing investors and analysts about the company’s direction.
Corporate governance experts have expressed concern about the frequency of leadership changes at major corporations, emphasizing the importance of maintaining clear ethical standards and proper disclosure protocols.
For Nestlé, the challenge extends beyond immediate leadership stability to addressing longer-term strategic questions about portfolio optimization, margin improvement, and competitive positioning in evolving global food markets.
The appointment of Navratil represents continuity within the organization, as the board opted for an internal candidate with deep institutional knowledge rather than conducting an external search that could have prolonged uncertainty.
Industry analysts will be watching closely to see how quickly Navratil can stabilize operations while continuing necessary strategic initiatives including potential portfolio restructuring and digital transformation efforts.
The Swiss company’s conservative corporate culture, built over 158 years, now faces pressure to demonstrate that governance standards can be maintained while delivering consistent operational performance in challenging market conditions.
Source: newsghana.com.gh
