Nestle CEO Shake-Up: Schneider Out, Freixe In Amid Performance Concerns

Nestle CEO Mark Schneider was ousted after nearly eight years due to the company's underperformance. Laurent Freixe, a company veteran, has been appointed the new CEO. Schneider's abrupt departure has raised concerns among investors and analysts about the company's future performance and strategies.

In a surprising move, Nestle CEO Mark Schneider has been ousted due to the company's underperformance, sources familiar with the matter informed Reuters on Friday. Schneider's departure, announced late Thursday post board meeting, marks the end of his nearly eight-year tenure. He is the first outsider to lead Nestle in nearly a century. Company veteran Laurent Freixe has been appointed as the new CEO.

The company refrained from providing further details, with Chairman Paul Bulcke mentioning in an investor call that the decision was mutual between Schneider and the board. Analysts, however, noted that Schneider had not anticipated his sudden exit, suggesting a lack of a planned transition.

Laurent Freixe, a long-time Nestle executive, is now tasked with steering the company towards growth focusing on sales and marketing. Nestle's shares, which soared during the pandemic, have been dipping since May 2023. The new CEO aims to restore market share and boost sales volumes amidst tough market conditions.

(With inputs from agencies.)