Nestlé Ousts CEO Amid Scandal, Appoints Nespresso Head Amid Profit Decline

Nestlé is undergoing a significant leadership transition following the abrupt dismissal of CEO Laurent Freixe due to a hidden romantic relationship with a subordinate. Freixe's tenure was marked by declining revenue and profits amid challenging market conditions, including sluggish consumer spending in China and rising commodity prices. The company has appointed Philipp Navratil, a 49-year-old Nestlé veteran with a strong background in coffee and prior leadership of Nespresso, to restore growth momentum and drive organizational simplification. Analysts view Navratil as a strategic and pragmatic leader who could bring a fresh perspective and accelerate Nestlé's return to its core strengths, amid investor calls for a leaner product portfolio and greater cost discipline. Despite initial market uncertainty, Nestlé's board emphasizes maintaining its strategic course while increasing the pace of growth and efficiency under Navratil's leadership. The transition reflects broader investor pressure on Nestlé to sharpen focus and respond to competitive pressures from rivals restructuring and activist investors advocating for change.