ZURICH, Switzerland: Nestlé has ousted Chief Executive Laurent Freixe after determining he failed to disclose a romantic relationship with a subordinate, ending his tenure just one year after he took charge of the Swiss food giant.

The company said that Philipp Navratil, a long-time Nestlé executive who most recently headed its Nespresso unit, would take over as CEO immediately.

The abrupt removal marks another leadership jolt for Nestle as it grapples with falling sales, tougher consumer markets, and the disruptive impact of U.S. trade tariffs.

Nestle said the decision followed an investigation led by Chairman Paul Bulcke and Lead Independent Director Pablo Isla into concerns about Freixe's relationship, which surfaced earlier this year through an internal hotline. An initial inquiry was inconclusive, but a second probe involving an outside firm confirmed the breach.

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

The company added that Freixe, who initially denied the relationship, will not receive an exit package.

Freixe's exit comes a year to the day after Nestle also parted ways with former CEO Mark Schneider. This sequence of upheavals, analysts warn, could unsettle investors despite reassurances that strategy and targets remain unchanged. "This new change is likely to keep afloat the question mark about the mid-term direction of the company," JPMorgan analysts wrote in a client note.

Nestle shares have shed 17 percent over the past year, underperforming rivals and the broader market.

The dismissal also adds to a string of high-profile leadership shakeups across global consumer companies this year. Unilever, Diageo, and Hershey have all seen senior departures, while in the U.S., Kohl's and Astronomer each lost their CEOs over workplace relationship issues.

Navratil, who joined Nestlé in 2001, has held leadership roles across Central America and Mexico before moving into the company's global coffee division. He took over Nespresso in July 2024 and joined Nestlé's executive board at the start of this year.