Swiss food giant Nestle has dismissed its chief executive, Laurent Freixe, after revelations of an undisclosed romantic relationship with a direct subordinate.

The company described the move as a step to protect its corporate values and governance standards.

“This was a necessary decision. Nestle’s values and governance are strong foundations of our company. I thank Laurent for his years of service,” the statement read in part.

Laurent, who joined Nestle in France in 1986, had only been CEO since September 2024. Before his promotion, he led the company’s European operations and previously headed its Latin America division.

In response to the leadership shake-up, Nestle’s board appointed Philipp Navratil, the current CEO of Nespresso, as the new chief executive. Navratil, who joined Nestle in 2001, has held several leadership roles, including overseeing global strategy and innovation for the Nescafe and Starbucks brands, before assuming control of Nespresso in July 2024.

Chairman Paul Bulcke voiced confidence in the new appointment, stating,

“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.”

The leadership change comes at a challenging time for the company, which reported a 10.3 percent drop in first-half profits in July, citing weak consumer spending in China despite higher product prices. The company’s share price also fell by nearly 25 percent last year, sparking concerns among Swiss pension funds heavily invested in Nestle.

Navratil pledged to maintain the company’s current strategy and continue implementing the ongoing value creation plan with determination.

Headquartered in Vevey on Lake Geneva, the company is behind well-known brands such as Nespresso, KitKat, Purina, Maggi, Gerber, and Nesquik.