Nestlé CEO Laurent Freixe: Transformation, Controversy, and Corporate Strategy

Introduction

Laurent Freixe, a longtime Nestlé executive, was appointed CEO of the global food and beverage giant in September 2024. Tasked with steering the company back to its core strengths amid soft sales and strategic criticisms, Freixe initiated significant operational changes. Yet his tenure ended abruptly in September 2025 following a breach of corporate conduct. This article delves into his background, strategic plans, and the circumstances surrounding his removal, offering insights into leadership dynamics at the world’s largest packaged-food company.

Career Journey & Strategic Vision

Background and Rise Through Nestlé

Born in Paris in April 1962, Laurent Freixe earned an MBA from EDHEC Business School and joined Nestlé in 1986. Over nearly four decades, he rose through diverse roles across marketing, regional leadership, and executive management. His notable achievements include launching the successful fish sticks brand Croustibat, turning around an underperforming snacks division, and expanding Nescafé Dolce Gusto in Europe.

Strategy and Business Initiatives

Freixe's strategic focus included:

• Refocusing on core brands such as coffee, pet care, and everyday foods, while deemphasizing expansion into health and supplements. He argued his predecessor diluted the company’s core strengths.

• Cost restructuring: Launched a CHF 2.5 billion–2.8 billion cost-cutting plan by 2027, aiming to reinvest savings in innovation and marketing.

• Marketing reinvestment: Increased marketing spend to 9% of sales in 2025 (up from 7.7% in 2023), to strengthen brand visibility and loyalty.

• Portfolio simplification: Announced plans to carve out premium water and beverage segments into their own global unit by early 2025.

Ascension & Abrupt Departure

Appointment as CEO

Freixe took over from Mark Schneider in September 2024, bringing deep institutional knowledge and an emphasis on internal leadership. Analysts hailed it as a return to a leadership model rooted in the company’s heritage.

Governance Breach and Dismissal

In a surprising turn, Nestlé dismissed Freixe in early September 2025 following an investigation that revealed an undisclosed romantic relationship with a subordinate—a violation of Nestlé's Code of Business Conduct. The decision was made by Chairman Paul Bulcke and lead director Pablo Isla, supported by external legal counsel.

Despite only serving for about a year, Freixe received no exit package. His dismissal followed a period of share price decline—down 17% under his leadership and nearly a third over five years—and marked the second CEO change in less than a year.

Philipp Navratil, a Nestlé veteran who formerly led Nespresso and held roles in global coffee strategy, was named his successor.Legacy — Achievements, Controversy & Broader Impact

Balanced Assessment of Freixe’s Legacy

Freixe’s short tenure produced tangible changes:

Positive Aspects:

• Initiated a strategic pivot with a focus on efficient growth and marketing revitalization.

• Emphasized organic growth and operational agility over acquisitions.

Challenges & Controversy:

• Sales performance remained weak, with growth projections slashed.

• Overshadowed by personal misconduct, his governance breach eroded leadership credibility.

Impact on Investors & Corporate Stability

Freixe’s exit deepened concerns about leadership stability at Nestlé. Investors and analysts termed the turbulence "atypical" for the traditionally steady Swiss group, raising questions about future strategic clarity.

Broader Takeaways for Corporate Governance

The controversy underscored the importance of ethics and transparency at the executive level. It mirrored similar governance lapses at other multinationals, reinforcing the need for robust oversight and corporate integrity.

7 Key Insights from the Laurent Freixe Saga

1. Internal Leadership Matters: Promoting an executive with deep company roots can provide stability—until governance lapses disrupt continuity.

2. Strategic Refocus: Cost reductions and marketing investments underlined a shift back to iconic brands and efficiency.

3. Economic Realities Persist: Despite strategic changes, Nestlé continued to face headwinds like weak sales and market pressures.

4. Ethics Over Performance: Personal conduct issues can swiftly nullify strategic gains, regardless of duration.

5. Investor Confidence Is Fragile: Repeated leadership changes spook markets and challenge long-term strategies.

6. Governance Compliance Is Non-Negotiable: Compliance failures at the top can carry immediate and irreversible consequences.

7. Reappointing Insiders: Successor Philipp Navratil's internal background points to the value of continuity and cultural fit in leadership transitions.

Conclusion

Laurent Freixe's brief tenure as Nestlé CEO was marked by bold restructuring initiatives aimed at rejuvenating the company’s focus, followed by a sudden exit due to an ethical breach. Whether viewed through his strategic reset or the governance failure that ended his leadership, his time at the helm reflects the delicate balance between performance, protocol, and personal conduct in the corporate world. His story serves as a powerful reminder that leadership effectiveness hinges not just on strategy, but on trust and integrity.