Earlier this week, Nestle’s CEO, Mark Schneider, announced a surprising decision to step down from his position. However, it wasn’t entirely his decision, according to a recent report by Reuters.
Detailing the change in a call with investors, Chairman Paul Bulcke stated that Schneider’s exit was a joint decision of Schneider and the company’s board after the assessment of the “current environment.” But sources who spoke with Reuters said that this wasn’t the case.
Reportedly, Schneider, who spent eight years in the role, was “ousted” from the company due to “underperformance.” Nestle has internally been worried about weak sales growth and the board believed the best way to move forward is to have a change at the helm.
Nestle’s sales increased in the first half of 2024 by only 0.1% while the company has been struggling with a declining stock.
Nestle already announced that company veteran Laurent Freixe will step in as the new CEO. Freixe worked at the company for 40 years and previously served as its executive vice president and head of its Latin America business.
“Laurent is the perfect fit for Nestlé at this time. Under his leadership, Nestlé will further strengthen its position as a dependable, reliable company through consistent and sustainable value creation,” Nestle chair Paul Bulcke said in a statement.