In a stunning turn of events, Nestlé has terminated its CEO Laurent Freixe after just one year, plunging the world’s largest food company deeper into management chaos, driven by revelations of an undisclosed romantic relationship at the workplace.

The Swiss-based giant, which owns well-known brands like Purina and KitKat, found that Freixe's affair with a direct subordinate breached its stringent code of conduct. The company's announcement came on September 1, as they appointed Philipp Navratil, the head of Nespresso, as his successor.

Freixe stepped into the CEO role following the unexpected dismissal of Mark Schneider in 2024, who faced criticism for sluggish performance during his almost eight-year tenure. Initially chosen as a reliable leader to steer the company back to stability, Freixe’s fall from grace has raised eyebrows.

Analyst Jean-Philippe Bertschy from Vontobel highlighted the precarious timing of this incident, noting that Nestlé is already in the spotlight amid a stream of negative headlines. He believes the company must navigate these turbulent waters soon to restore investor confidence.

The investigation into Freixe began when an internal whistleblowing system, known as "speak up," brought forward initial concerns. While an early probe seemed inconclusive, further allegations led to a comprehensive investigation involving outside counsel.

Notably, Freixe will leave without a severance package, according to reports.

A Wave of Leadership Changes

Freixe's dismissal is just the latest in a series of high-profile exits from various corporations over similar infractions relating to workplace romances. In 2023, BP's CEO Bernard Looney resigned under similar circumstances, and in 2019, former McDonald's CEO Steve Easterbrook was ousted for a consensual relationship with an employee, violating company policy.

Even Intel’s Brian Krzanich was forced out in 2018 for a past consensual relationship, aligning with a trend where corporate policies against such conduct are strictly enforced.

During his leadership, Freixe attempted to reignite growth through increased advertising and strategic reviews, targeting the struggling vitamin sector. However, he failed to regain investor trust, with Nestlé's stock plummeting 17% during his time at the helm, compared to a mere 5% drop for rival Unilever. Additionally, Nestlé reported a 0.4% contraction in sales volumes in Q2 2025.

Introducing a New Era: CEO Philipp Navratil

Taking over the reins, Philipp Navratil brings over 20 years of experience within the company. Having joined the executive board in early 2025, Navratil previously oversaw the global strategy at Nespresso. Bloomberg Intelligence’s Duncan Fox noted that Navratil has the opportunity to rethink Nestlé’s portfolio, potentially stepping away from low-growth sectors.

As a fresh face under the age of 50, he could lead the company for a decade or more, navigating ongoing challenges like global trade tensions exacerbated by US tariffs. Despite 90% of Nestlé's US products being domestically produced, Nespresso's Swiss-made capsules now face a hefty 39% tariff, complicating matters further.

Only time will tell if Navratil can steer Nestlé into calmer waters as the company grapples with internal strife and external market pressures.