Nestle Faces Leadership Crisis: CEO Ousted Amid Scandal

Nestle has abruptly fired its CEO Laurent Freixe, making him the second CEO to exit in a year. The decision follows an investigation into a romantic relationship that breached company conduct codes, deepening the leadership crisis at the Swiss food giant.

Freixe's ousting came after staff raised concerns through an internal hotline, leading to a formal investigation led by Chairman Paul Bulcke. The company acknowledged that Freixe denied the relationship initially, but consistent staff concerns led to his removal. Philipp Navratil has been appointed as the new CEO.

Investors are apprehensive as Nestle's shares have underperformed, dropping significantly over the past five years. The leadership upheaval and business strategy uncertainties leave the market skeptical about the company's mid-term direction and stability.

(With inputs from agencies.)