Global food manufacturer, Nestlé, has relieved its Chief Executive Officer (CEO), Laurent Freixe, of his job after he was found to have kept an amorous relationship with a subordinate.
Nestle, in a statement, said this behaviour contradicts its corporate values and governance standards.
The company said it was compelled to move against Freixe to preserve the values it held sacred. These values, according to the statement, formed the core of the company.
Freixe has worked for Nestlé since he joined the company in France 38 years ago.
He became the CEO of the company exactly a year ago after her was plucked from managing Nestlé’s European operations. He had previously headed the Latin American division.
In Freixe’s stead, Nestlé’s board has appointed Philipp Navratil, who until now was the CEO of Nespresso.
Philipp joined the company in 2001 and has held several leadership roles in Central America. He oversaw global strategy and innovation for the Nescafé and Starbucks brands before he was promoted to manage Nespresso in July 2024.
Nestlé chair, Paul Bulcke, said the board was confident that Philipp would drive the growth of the company and accelerate efficiency efforts.
He announced that the company was not changing course on strategy and would not lose pace on performance.”
Nestle recorded a 10.3 per cent drop in first-half profits in late July. This was attributed to sluggish consumer spending in China. The company had earlier passed on higher cocoa and coffee costs to customers.
Nestle’s share price fell by about 25 per cent last year, creating fears in the minds of investors.
The new CEO has vowed to sustain the company’s strategic direction and actively drive the ongoing value creation plan of the company.
Geneva-based Nestlé produces the world’s best-known brands such as Maggi, Nespresso, Nesquik, KitKat, Purina, and Gerber.
