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Nestlé — the world’s biggest food company — just fired its CEO Laurent Freixe after disclosing a relationship with a subordinate. This shocking scandal has left investors, employees, and consumers wondering: What really happened inside Nestlé? Why did the board act so quickly? And what does this mean for new CEO Philipp Navratil? In this video, we break down the full story — from Freixe’s 40-year rise inside Nestlé to his sudden downfall, and what it reveals about the future of corporate leadership. Stay tuned for a deep-dive news explainer on one of the biggest corporate scandals of 2025."

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Transcript
00:00What just happened, I can not believe when the CEO of the world's largest food company,
00:04the man running brands like KitKat, Nescafe, and Purina, is suddenly fired after admitting
00:10to a secret office romance, the world takes notice. This isn't just about one executive's
00:15personal mistake. It's about corporate ethics, governance, and the reputation of a $90 billion
00:21global empire. So, what really happened at Nestle? Let's break it down. Nestle. A name
00:29you see in every supermarket, on every shelf, in every corner of the world. From your morning
00:34coffee to your kid's favorite chocolate bar, Nestle isn't just a company. It's the food
00:40and beverage giant, employing over 275,000 people worldwide. But on September 1, 2025, the company
00:48stunned the world when it announced the immediate dismissal of CEO Laurent Freaks. The reason?
00:53Not fraud, not financial scandal, not corporate espionage. Right finger a romantic relationship
01:01with a subordinate. Now, office romances happen. But when you're the CEO of Nestle, the world's
01:08biggest food empire, the rules are different. Here's what Nestle admitted. Freaks, who had only
01:14been in the top job for about a year, disclosed a relationship with a direct subordinate. That
01:20disclosure triggered an investigation, ordered by Nestle's chairman, Paul Bulka, and overseen
01:25by independent counsel. The board concluded that this was a serious breach of Nestle's code
01:30of business conduct. And just like that, the CEO was out. Now you might be thinking, it's
01:37just a relationship, what's the big deal? Well, when it comes to corporate governance, things
01:42aren't so simple. A CEO holds the ultimate position of power. A relationship with a subordinate
01:48raises questions of consent, favoritism, and ethics. If undisclosed, it can create legal
01:54risks, shareholder backlash, and reputational damage. And Nestle? They weren't about to take
02:01that chance. Laurent Freaks wasn't some outsider parachuted in. He joined Nestle in 1986 in France.
02:10Climbed through the ranks in marketing and sales. By 2007, he was running Nestle's entire European
02:16operations. He was known as a company man, a strategist, and someone who lived and breathed
02:22the Nestle culture. Finally, in 2024, after the exit of former CEO Mark Schneider, Freaks was handed
02:29the top job. It was supposed to be the peak of a nearly 40-year career. Instead, just one year later,
02:36it ended in humiliation. So, who's taking over? Meet Philip Navratil, a name not well-known outside of
02:44Nestle, but inside the company he's considered a rising star. Born in 1976, he joined Nestle in 2001
02:52as an internal auditor. Rose through commercial roles in Central America and Mexico. Led the Nespresso
02:59unit, one of Nestle's most profitable divisions. In January 2025, he officially joined the executive
03:06board. Now, less than a year later, he's sitting in the CEO's chair. The board praised his dynamic
03:13presence and inclusive management style. But let's be honest, stepping into this role in the middle of
03:19a scandal? Not exactly the dream promotion. This isn't just about one man's mistake. It's about how
03:26Nestle manages power, reputation, and accountability. Because let's not forget, Nestle is the company behind
03:33Nescafe, Perrier, KitKat, Purina, Haagen-Dos, Lean Cuisine, Magi, and thousands of other products.
03:42It's a company with $91.7 billion in annual revenue. It employs more people than many governments.
03:50When a CEO falls, it doesn't just make headlines, it shakes confidence across markets, investors,
03:55and even consumers. So here's where I'll leave it to you. Was Nestle right to fire Laurent Freaks over
04:02this relationship? Or was it an overreaction to a private matter? And what do you think about the
04:08new CEO Philip Navrido? Will he steady the ship, or is Nestle heading for more turbulence?
04:14Drop your thoughts in the comments. Because this isn't just about Nestle. It's about the future of
04:20corporate leadership, ethics, and trust. Thanks for watching. Don't forget to like, share,
04:26and subscribe for more world news breakdowns. Until next time, stay curious, stay informed.
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