Zurich —Nestlé, the world’s largest food company, has been thrown into fresh turmoil after abruptly dismissing its chief executive, Laurent Freixe, less than a year into his tenure, for violating the company’s code of conduct. Nestle fires CEO Laurent Freixe over secret affair. The decision marks the second leadership upheaval at the Swiss multinational in just over twelve months, rattling investors and raising pointed questions about Nestlé’s long-term direction.
Freixe, a 39-year veteran of the company, was forced out after failing to disclose a romantic relationship with a subordinate. Nestlé confirmed that he would depart without an exit package, underscoring the gravity of the breach. The swift dismissal stunned investors already grappling with a steady erosion in the company’s market value.
Shares of Nestlé dropped sharply, sliding more than 3 percent on the STOXX 600 index as trading opened Tuesday. Over the past five years, the company has lost nearly a third of its market capitalization. Freixe’s short tenure alone oversaw a decline of about 17 percent, intensifying shareholder unease.
In his place, Nestlé appointed Philipp Navratil, a long-time executive who most recently led its Nespresso division. While insiders see Navratil as a continuity choice, analysts have warned that he may be constrained by strategic frameworks left behind by his predecessor. JPMorgan cautioned that without a clear mid-term vision, confidence in the company’s turnaround will remain fragile.
Kepler Cheuvreux analysts noted that such volatility is highly uncharacteristic for Nestlé, a 159-year-old corporation that historically prided itself on stability. “This level of churn is simply not something investors expect from Nestlé,” one market observer remarked, adding that the uncertainty threatens the company’s standing as a global consumer giant.
The leadership vacuum is set to widen further when Chairman Paul Bulcke steps down in 2026, raising the specter of one of the most unsettled governance periods in Nestlé’s history. Without firm assurances on strategy, analysts say, the company could face intensifying pressure from activist investors, who have grown impatient with its lagging performance compared to rivals in the sector.
For now, Navratil inherits a deeply shaken investor base, a fractured leadership reputation, and the monumental task of reversing a share price slide that has come to symbolize Nestlé’s struggles in adapting to shifting global consumer trends. Whether he can deliver stability and credibility will define the company’s immediate future.
According to Reuters, Nestlé’s dismissal of Freixe and the appointment of Navratil signal a rare moment of fragility for a company long viewed as a cornerstone of European corporate governance, highlighting just how turbulent the road ahead could be.
