Nestlé has dismissed CEO Laurent Freixe after just one year in the role, following an internal investigation into an undisclosed romantic relationship with a subordinate — a violation of the company’s code of business conduct. The Frenchman’s sudden exit marks the second CEO ousting in under a year, compounding what investors are calling the company’s worst leadership crisis in decades.

Freixe, who replaced former CEO Mark Schneider after his departure in August 2024, is now succeeded by Philipp Navratil, the head of Nespresso and a rising figure within the company. Navratil takes over at a turbulent time, with Nestlé facing slowing sales, U.S. tariffs, and mounting investor pressure over years of underperformance.

The misconduct came to light through Nestlé’s internal whistleblower system, Speak Up. While initial investigations found no evidence, further inquiry confirmed the violation after Freixe allegedly misled the board by denying the relationship.

“This level of leadership turnover is unprecedented,” said Ingo Speich, head of Corporate Governance at Deka Investment, one of Nestlé’s top 30 shareholders. “The new CEO must urgently fix the business model, boost volumes, and refocus on emerging markets.”

Nestlé shares slipped 0.8% in Zurich following the announcement.