Nestlé melts down at the top: Scandal, firings, and exits

One CEO fired for weak results, the next toppled by scandal, and now the the chairman forced out early. Nestlé, the world’s largest food company, is in turmoil—and investors are demanding nothing short of a turnaround.

So, what went wrong at this 159-year-old giant? And why are so many consumer companies suddenly cleaning house at the top? Let’s break it down.

No break for Nestlé 

Nestlé has long been a staple in the consumer goods industry, a global powerhouse and a stock market darling. But lately, the company has consistently underperformed.

Take its volume growth as a stark indicator: Just 0.1% in 2022, a 0.3% decline in 2023, and a meager 0.8% growth in 2024. These figures paint a worrying picture. Nestlé wasn't selling more products; it was relying on price hikes to boost revenue. Sales growth has stalled, debt has ballooned, and costs have surged past its rivals.

Nestlé's stock has lost 40% of its value since 2022, wiping out tens of billions of dollars in market value.

Leadership exodus

In August 2024, CEO Mark Schneider stepped down after critics argued he was too focused on acquisitions and cost-cutting in key areas.

His successor, Laurent Freixe, didn’t even last a full year. In September 2025, he was dismissed following a misconduct probe into an undisclosed relationship with a subordinate. A second external investigation sealed his fate, marking a significant governance embarrassment for the company.

As trust in leadership crumbled, Nestlé faced a major challenge. At the 2025 Annual General Meeting (AGM), Chairman Paul Bulcke saw his re-election support plummet as investors lost patience.

Now, Pablo Isla steps in as chairman, tasked with rebuilding trust, stabilising leadership, and convincing investors that Nestlé can grow again.

A sector-wide shake-up

Nestlé’s turmoil is not an isolated case. It isn't about one company's bad luck. Across the global consumer goods industry, leadership upheavals are shaking the foundations of some of the biggest companies.

In February 2025, Unilever replaced CEO Hein Schumacher with CFO Fernando Fernandez. Procter & Gamble also saw a leadership shift, promoting COO Shailesh Jejurikar to CEO after Jon Moeller stepped down just four years into his tenure.

In the US, major companies like Kohl’s, Stanley Black & Decker, Hershey, Kenvue, and Diageo have all undergone leadership shake-ups.

Even Elliott Management, one of the most powerful activist players in the market, recently took a massive $4 billion stake in PepsiCo, calling for a turnaround. The firm described the company as a “dramatic underperformer,” urging it to fix its strategy to regain investor confidence. Elliott Management has a history of pushing for strategic overhauls in underperforming companies.

So, what’s driving these leadership shake-ups? The post-pandemic world has presented significant challenges. Rising costs, shifting consumer behaviours, and slowing economic growth have left these consumer giants struggling to adapt.

Investors, once patient, are now demanding faster growth and higher returns. They feel these companies have become bloated, slow-moving, and out of touch with the fast-changing consumer market. There’s growing pressure for these businesses to become leaner, more efficient, and more agile in a world where speed and adaptability are crucial.

The trend is not confined to the West.

In India, Hindustan Unilever (HUL), the country’s largest FMCG company, has also faced slowing growth and fierce competition. Just like its global counterparts, HUL saw a leadership change, with Priya Nair stepping in as the new CEO.

Cal for new era: Lean and agile

Whether on Wall Street, in Zurich, or in India, the message is clear: The old playbook of size and brand sprawl no longer works.

Investors and boards now demand lean, efficient businesses that can deliver solid performance.

CEOs who can’t meet these demands are being shown the door—replaced by those who can navigate the fast-paced, ever-changing consumer landscape.