Nestlé Fires CEO After Alleged Romantic Relationship with Employee

Nestlé dismissed its CEO following an investigation that he allegedly had an “undisclosed romantic relationship” with a subordinate. 

The Switzerland-based food company’s board of directors made the announcement on Monday, Sept. 1, noting that Laurent Freixe’s departure immediately went into effect. 

Freixe served as Nestlé’s CEO last year, according to his company bio. He had been with the corporation for almost 40 years, starting with Nestlé France’s sales and marketing divisions. 

Nestlé described the alleged relationship as a violation of the company’s code of business conduct. 

“In line with best practice corporate governance, the Board ordered an investigation overseen by Chairman Paul Bulcke and Lead Independent Director, Pablo Isla, with the support of independent outside counsel,” the company stated.

Bulcke said the decision to dismiss Freixe was “necessary.”  

“Nestlé’s values and governance are strong foundations of our company,” he said. “I thank Laurent for his years of service at Nestlé.”

PEOPLE has reached out to Freixe for comment.

Philipp Navratil has replaced Freixe in the role of CEO, the company also announced. Navratil, who began his career at Nestlé in 2001 as an internal auditor and has been serving as CEO of Nespresso since July 2024, joined Nestlé’s executive board earlier this year. 

“Renowned for his dynamic presence, he inspires teams and leads with a collaborative, inclusive management style,” Bulcke said in his statement about Navratil. “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 responded to his new role as CEO in a statement: “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. I fully embrace the company’s strategic direction, as well as the action plan in place to drive Nestlé’s performance.”

In a Tuesday, Sept. 2, email to PEOPLE, a Nestlé spokesperson said that the company had no further comment beyond what was already stated in its earlier news release. The spokesperson added that the board acted immediately on information from “anonymous reports” submitted through Speak Up, Nestlé’s independent global reporting channel, this past May.

”In line with best corporate governance practice, the company conducted a rigorous and thorough internal and external investigation, with the support of independent outside counsel,” the spokesperson said in a statement. “This has resulted in the decision announced yesterday. Nestlé has strong values and expects everyone, including senior leadership, to live up to them.”

The spokesperson also confirmed to PEOPLE that Freixe will not receive a severance package. 

Freixe’s firing is the latest in which a major company’s top executive has exited over an alleged personal relationship with a colleague.

Astronomer CEO Andy Byron and human relations executive resigned from their roles after the two were caught wrapped in each other’s arms in July.

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In 2023, Bernard Looney resigned his position as CEO at oil giant BP after he failed to disclose his relationships with colleagues, the company said at the time. And in 2019, McDonald’s fired CEO Steve Easterbrook, stating that he “violated company policy and demonstrated poor judgment involving a recent consensual relationship with an employee.”