Nestle fires CEO for romantic relationship with colleague • FRANCE 24 English

Nestle fires CEO for romantic relationship with colleague • FRANCE 24 English

Brian’s here with business now. Has he got good news or not? It’s starting with the CEO of the Swiss food giant Nestle been fired over a romantic relationship with a colleague. Not good news uh for him, you would imagine, Stuart. Nestle CEO Lauron FX abruptly removed from his post after just a year on the job following an investigation into an undisclosed romantic entanglement with a direct subordinate. The company calling his conduct contrary to company values. It’s the latest dismissal in a growing list of firms parting ways with their CEOs after investigations into workplace relationships. Charlotte Lamb takes a closer look. After just one year in the job, Nestle fires chief executive Laurent Failing to disclose a romantic relationship with what it’s calling a direct subordinate. A company veteran, F joined Nestle in France in 1986. He ran the firm’s European operations until 2014 and then headed the Latin American division before his promotion to CEO. The Financial Times earlier this year reported concerns about the director’s relationship with an employee, prompting an internal investigation. The Swiss food and drink giant says the undisclosed relationship goes against company values, calling the dismissal a necessary decision. Nestle isn’t the only company forced into an embarrassing leadership shakeup. Most recently, Data Company: Astronomer’s CEO resigned after a Coldplay concert appeared to catch him canodling with the firm’s HR officer. Two years ago, oil giant BP’s chief executive quit after admitting he was not fully transparent over personal relationships with colleagues. And McDonald’s fired its former CEO in 2019 over a consensual relationship with an employee. For Nestle, the abrupt dismissal marks the end of an era for one of its longest serving executives. In a swift move, Philip Navertil, the CEO of Subbrand Nespresso has been appointed to take over. What are we seeing on the markets so far, Brian? So, Nestle shares lost 3% a little bit more even at the open on news of that CEO firing. Overall though a muted open for European indexes after US markets were closed for Labor Day. Katar current here up a third of a percent. London Frankfurt down a quarter percent. Over on the Asian index is a mixed picture as investors try to parse the implications of the Shanghai Cooperation Organization Summit and the shifting trade landscape there. Mumbai is Nifty50 up 4/10en of a percent after Donald Trump said India had offered to drop all its tariffs on US goods. Now we’ve had a reported offer by India to drop tariffs on US goods. comes as a deepening trades gap between the two countries is taking a toll on some of India’s top export industries. Indeed, the US one of India’s largest trading partners, in fact, the largest trading partner, taking in more than 86 billion worth of American goods last year. That relationship clearly on the rocks after Donald Trump slapped 50% tariffs on Indian goods. Those tariffs hitting especially hard from labor intensive industries like textile and apparel. Friends 24’s team in Delhi sent this report. Within hours of Trump’s 50% tariff roll out in India, the entire apparel hub of Nida on the outskirts of New Delhi was thrown into shock. Nearly 4,500 factories here manufacture garments for markets worldwide. With the US accounting for 20% of the business valued at 1.2 billion at this factory, over 5,000 garments are packed every day for American clients. It looks like a very basic, you know, sweatshirt, but there’s a lot of work that’s gone into it in terms of sewing, designing, and then you have the, you know, LA, Los Angeles logo on it. This is selling nowhere but the US. If originally I have a price of, let’s hypothetically speaking, $20 for this, I’ll be lucky if I’ll be able to sell it to somebody else for $4. Ashis Gujaral runs four factories that employs nearly 6,000 workers and 80% of his business comes from the US. Out of the four factories, we’ll probably end up shutting down three of them in the next couple of weeks. Some of my workers have been with me for more than 20 years. And to suddenly see them jobless is going to be a big big big problem. You know, people like us will still find a way to survive. With this tariff by Trump, I won’t be able to take care of my wife and children. We’ll become homeless. Every day when I come to work, I feel I have the job only until evening, but I worry if I’ll still have it the next day. Economists argue that there is a limit to export-led growth and that this crisis should be seen as an opportunity to push for long-term economic reforms. This should be a wakeup call to innovate and to not to rely on your, you know, easily available labor or low wages as your competitive advantage. Your competitive advantage should be based on knowledge and innovation. India’s strength has not always been in its trade in goods but its trade in services and its you know large pool of talent and young people. The Indian government is working out financial aid for exporters to cope with the 50% tariff and protect jobs team there in India. Everyone, thanks very much for

Swiss food giant Nestle removes its CEO Laurent Freixe after just a year on the job over a relationship with a direct subordinate. We take a closer look. Also in this edition: India’s textile export industry comes apart at the seams as US President Donald Trump’s tariffs take effect.
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