Nestlé has dismissed CEO Laurent Freixe immediately following an investigation into an undisclosed romantic relationship with a subordinate, which violated the company's code of conduct. The investigation was prompted by internal complaints and later confirmed by external counsel, leading to Freixe's departure after only one year in the role. Freixe, who had been with Nestlé for nearly 40 years and was promoted to CEO last August, aimed to refocus the company on its core businesses amid a challenging year marked by slowing sales and various controversies, including raids by French authorities over bottled water practices and a US recall of frozen meals. Philipp Navratil, previously head of Nespresso and a long-time internal executive, has been appointed as the new CEO. Nestlé’s chair, Paul Bulcke, emphasized that the decision was necessary to uphold the company's values. The company’s shares fell 3.2% following the announcement, and the stock has declined over 40% since its 2022 peak.