• Nestlé CEO Laurent Freixe was dismissed over an undisclosed relationship that violated company conduct rules.
• Philipp Navratil, previously head of Nespresso, has been appointed as the new CEO.
• Freixe's ousting marks Nestlé's second CEO change in a little over a year, raising concerns about management stability.
• The company has struggled with declining profits and investor confidence amid global economic challenges.
• Concerns regarding Freixe's conduct first surfaced in May, prompting an internal investigation.

Swiss food giant Nestlé has terminated CEO Laurent Freixe effective immediately following an investigation into an undisclosed romantic relationship with a direct subordinate, a breach of the company's code of business conduct. This decision, described as necessary by Nestlé Chairman Paul Bulcke, marks the second CEO change in just over a year, compounding management challenges for the company, which is already facing sluggish sales and declining share prices, according to Le Monde and South China Morning Post.

Philipp Navratil, formerly the CEO of Nespresso, has taken the helm as the new CEO. Navratil, a long-time Nestlé executive, is expected to lead the company through a challenging period marked by operational and financial difficulties. He has pledged to maintain the existing strategic direction while pushing for operational improvements and efficiency, reflecting confidence from the board despite the controversy surrounding Freixe's departure, according to India Times and Reuters.

Freixe's dismissal follows an internal inquiry initiated in May, which revealed accusations of "improper favoritism" and the undisclosed relationship, according to Chief Financial Officer Anna Manz. Initially, the investigation uncovered no conclusive evidence; however, sustained complaints led to a more comprehensive probe resulting in his termination. His lack of an exit package highlights the severity of the breach, as noted in statements made by the company and reported by Bangkok Post and Al Jazeera.

Nestlé's struggles have been exacerbated by ongoing challenges in the marketplace, including rising operational costs and tariffs on some of its products. Under Freixe's leadership, the company's share price fell nearly 17%, raising concerns among investors about the future direction of the company's management and strategy. Analysts suggest that while Navratil may offer a fresh perspective, the immediate need for strategic continuity amid ongoing restructuring efforts underscores the difficult task ahead, as outlined by Reuters and India Times.