ZURICH (Reuters) - Nestle is replacing Chief Executive Mark Schneider with long-serving executive Laurent Freixe, the company said on Thursday, a big change at the world's biggest foodmaker which has struggled with the cost of living crisis hitting customers.

Schneider has decided to relinquish his roles as CEO and member of the Board of Directors after eight years leading the company, Nestle said.

Nestle has struggled recently, last month cutting its full year sales outlook, saying it had had to slow its price hikes as cash-strapped customers become more price conscious.

Shares at the maker of KitKat chocolate bars and Nestle instant coffee have fallen 8% in 2024, underperforming rivals like Unilever which have gained 29%.

Freixe joined Nestle in 1986, and has been on the Swiss company's executive board for 16 years. In his most recent role he was CEO of Zone Americas.

"A veteran, knowing Nestlé in and out, as well as the markets, is taking over," said Bank Vontobel analyst Jean-Philippe Bertschy.

The change is effective from Sept. 1, Nestle said.

The switch to Freixe is a return to the Nestle's normal practice of promoting chief executives from within the company.

Schneider, the former boss of German healthcare company Fresenius, was Nestle's first external hire for its top job in nearly a century when he took charge in 2016.