KitKat producer dismisses CEO for having undisclosed affair with subordinate

Nestle has abruptly dismissed its CEO Laurent Freixe for failing to disclose a romantic relationship with a subordinate, the Swiss food giant said on Monday, a dramatic removal exactly a year after he took the reins, CNN writes.

The maker of products ranging from KitKat to Nesquik said that it had appointed veteran insider Philipp Navratil, who had headed the Nespresso coffee unit, as Freixe’s successor with immediate effect.

As noted, the shock departure threatens more volatility for Nestle amid a tough consumer environment and the disruptive U.S. trade tariffs.

Nestle said Freixe’s departure follows an investigation overseen by Chairman Paul Bulcke and Lead Independent Director Pablo Isla into an undisclosed romantic relationship with a direct subordinate, which breached the company’s code of business conduct.