Shares in Swiss food giant Nestle tumbled on Tuesday after the group’s chief executive was abruptly sacked over an undisclosed romantic relationship with a direct subordinate.
The multinational behind Nespresso coffee capsules and KitKat chocolate bars announced the dismissal of Laurent Freixe in a statement late Monday following an internal investigation.
Nestle shares were down 1.8 percent at 74.12 Swiss francs ($92.17) at around 0810 GMT on the SMI, the index of Swiss blue-chip stocks.
Freixe, a company veteran, had only been in the top spot since a surprise switch in September 2024, entrusted with reversing soft spending by consumers for the company’s food and household goods.
The board named the head of Nespresso, Philipp Navratil, to replace Freixe.
It is the latest negative headline for Nestle, which has been rocked by a scandal over the use of micro-filtration processes for its bottled water products.
“The CEO change could lead to paralysing uncertainty, but in a positive scenario it could accelerate Nestle’s return to its strengths,” said Patrik Schwendimann, analyst at Zurcher Kantonalbank, a Swiss cantonal bank.
“Philipp Navratil should bring a breath of fresh air from within,” he said.
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