New Delhi, Sept. 2 -- Swiss food giant Nestle said on Monday that Nespresso executive Philipp Navratil will replace Laurent Freixe as the CEO of the company, in an abrupt shakeup of the upper management.

Navratil's appointment comes after the Swiss company dismissed Laurent Freixe over his alleged affair with a subordinate at the office.

"Nestle's Board of Directors today announces that Philipp Navratil has been appointed as CEO of Nestle, S.A., following the dismissal of Laurent Freixe with immediate effect," the company said in a press release on Monday.

Nestle's shares fell 3.6 per cent in early trading on Tuesday before paring the drop.

Philipp Navratil started his career with Nestle in 2001 and has decades of experience in the co...