Switzerland: Food and beverage multinational Nestlé announced on Tuesday that Chairman Paul Bulcke has stepped down from his position. He will be succeeded by former Inditex chief executive Pablo Isla, who will take over as Chairman beginning October 1.

 

In an official statement, Nestlé’s Board of Directors confirmed the leadership change, noting that Bulcke will remain associated with the company in the capacity of honorary chairman.

 

Leadership under scrutiny

Bulcke’s early exit comes after increasing scrutiny over his role in the handling of former CEO Laurent Freixe’s dismissal. Freixe, who took charge of the company just last year, was removed from his post following revelations of an undisclosed relationship with a junior employee, according to Reuters.

 

“This is the right moment for me to step aside and accelerate the transition,” Bulcke said in his statement, adding that the company would benefit from “fresh perspectives” under new leadership.

 

Investor concerns mount

Nestlé has been under mounting pressure from investors and analysts to modernize its operations as the consumer goods sector faces significant cost pressures and stiff competition. Several competitors have opted for cost-cutting and restructuring, while Nestlé has been criticized for being slow to adapt.

 

The company’s shares have fallen by more than 40 percent since 2022, while revenues have grown at a slower pace. Rising costs have further strained the company’s balance sheet, with debt levels surpassing those of rivals including Unilever.

 

Earlier this year, Nestlé had indicated that Bulcke would step down in 2025. However, concerns over leadership, falling share value, and questions about the company’s corporate governance accelerated the timeline.