Outgoing Starbucks CEO Laxman Narasimhan‘s resignation has fueled widespread interest and speculation. The unexpected leadership change has left many curious about the reasons behind the transition.
Here is everything to know about the change in Starbucks’ leadership.
Why did Starbucks CEO Laxman Narasimhan step down?
No reason has been given behind Laxman Narasimhan stepping down as Starbucks CEO. However, the departure has come amid reports of the coffee giant’s falling sales and sinking stock prices.
Narasimhan has unexpectedly stepped down from his role as CEO and as a member of the Starbucks board, effective immediately. The announcement comes at a critical time for the company, which has been facing significant challenges, including broad-based sales declines. Additionally, Starbucks has been under pressure from activist fund Elliott Investment Management, which recently took a stake in the company and has been pushing for measures to boost its share price. (via CBS News)
In a statement, Starbucks Board Chair Mellody Hobson acknowledged Narasimhan’s contributions, noting his dedication to improving the business despite the challenges.
Who is the new CEO of Starbucks?
Brian Niccol is the new CEO of Starbucks.
Starbucks has announced the appointment of Niccol as its new chairman and chief executive officer. His tenure will begin on September 9, 2024. Until then, the company’s chief financial officer, Rachel Ruggeri, will step in as interim CEO. Mellody Hobson, who currently serves as Starbucks’ board chair, will be the lead independent director.
Niccol, who is currently Chairman and CEO of Chipotle, has been instrumental in transforming the company. Under his leadership, Chipotle has seen remarkable growth, with nearly doubled revenue, an increase in profits, and a surge in stock prices.
In a statement, Hobson said, “We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself. Brian is a culture carrier who brings a wealth of experience and a proven track record of driving innovation and growth.” Niccol himself expressed his excitement about joining Starbucks, noting his admiration for the brand’s unique culture and mission. (via Starbucks Stories)
