Swiss food conglomerate Nestlé on Monday announced the immediate dismissal of CEO Laurent Freixe due to an “undisclosed romantic relationship with a direct subordinate.”

The company, known for brands such as Nespresso and KitKat, said the decision followed an internal investigation.

Philipp Navratil, CEO of Nespresso, was promptly appointed by the board to succeed Freixe.

“The departure of Laurent Freixe follows an investigation into an undisclosed romantic relationship with a direct subordinate which breached Nestle’s code of business conduct,” a statement said.

The board stated that it had launched an investigation, overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla, with assistance from external legal counsel.

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

A long-serving Nestlé executive, Freixe joined the company in France in 1986. He led the firm’s European operations until 2014, guiding them through the 2008 subprime and eurozone crises.

He later led Nestlé’s Latin America division before being promoted to CEO.

Freixe had held the top position since a surprising appointment in September 2024, tasked with countering weak consumer spending on the company’s food and household products.

Nestlé’s share price fell by nearly 25% last year, sparking concern in Switzerland, where pension funds hold significant stakes. The company’s portfolio also includes Purina pet food, Maggi bouillon cubes, Gerber baby food, and Nesquik chocolate drinks.