Nestlé Faces Turmoil as Second CEO in a Year Is Ousted

Nestlé has entered another period of turbulence after ousting CEO Laurent Freixe, just a year after his predecessor Mark Schneider was removed. The Swiss food giant confirmed Freixe’s dismissal late on Monday following an internal investigation into a romantic relationship with a direct subordinate, which breached the company’s code of conduct. Freixe, who had spent nearly four decades at Nestlé, will not receive an exit package.

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The decision was made at a special board meeting, with chairman Paul Bulcke calling the move “necessary” despite acknowledging Freixe’s long service. Freixe’s departure comes only weeks after Bulcke himself announced plans to step down in 2026, underlining a rare period of instability at one of Switzerland’s most iconic companies.

Nestlé’s shares, already struggling, fell 1.9% in premarket trading on Tuesday. The company has lost almost a third of its value in five years, underperforming European peers and disappointing long-term investors. During Freixe’s short tenure, shares dropped 17%, reflecting weak sales volumes and concerns about strategy. Analysts said the appointment of Philipp Navratil as his successor raises questions about whether Nestlé can restore stability and address mounting pressure over its underperforming businesses, including vitamins and supplements.

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The removal of Laurent Freixe marks one of the most turbulent management periods in Nestlé’s 159-year history. The company, best known for Nescafé and KitKat, was once considered a model of stability, with CEOs often serving for years before becoming chairmen. However, two abrupt changes at the top in little over a year have shaken investor confidence and left uncertainty about Nestlé’s direction.

Philipp Navratil, described as a rising star within the company, now takes over as CEO. Analysts warn, however, that he may be constrained by Freixe’s unfinished turnaround strategy at a time when Nestlé is struggling with declining sales volumes. In July, the company launched a review of its vitamins business after weak performance, and further restructuring may follow.

Market watchers remain cautious. JPMorgan analysts said the repeated leadership changes without thorough searches risk leaving Navratil “boxed in,” while others argued that Nestlé must restore credibility with investors quickly. Jon Cox of Kepler Cheuvreux noted that Nestlé’s tradition of stability has been undermined, saying: “This is not the Nestlé way to do things.”

With shares under pressure and investor patience wearing thin, Navratil’s first task will be to provide clarity and restore confidence in the company’s long-term growth strategy.

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