Starbucks has replaced its Indian-origin CEO Laxman Narasimhan with Brian Niccol, chief executive at Chipotle.
New Delhi: On Tuesday, Starbucks announced the replacement of its Indian-origin CEO, Laxman Narasimhan, with Brian Niccol, the current chief executive of Chipotle. According to an official statement from the coffee company, Narasimhan is stepping down from both his role as CEO and his position on the Starbucks board “with immediate effect.” A seasoned professional with a history at PepsiCo and various consumer brands, Laxman Narasimhan assumed the CEO role in March 2023 after collaborating closely with Howard Schultz, the company’s long-serving CEO and interim leader.
Last month, in an interview with Fortune magazine, Narasimhan emphasized the significance of maintaining a work-life balance, stating that he “almost never” worked beyond 6 PM. He mentioned that he wrapped up his tasks by that time and suggested that anyone seeking his attention after hours should ensure their matter is truly important.
“I prioritize balance very seriously. If something comes up after 6 PM while I’m in town, it has to be significant to take me away from my family. Anyone who gets my attention after that better ensure it’s important… Otherwise, it can wait until tomorrow,” the 57-year-old stated during his July 7 interview, which has since gone viral on social media, with many users claiming he was “fired.”
In its announcement, Starbucks commended Laxman Narasimhan for his contributions, highlighting his role in driving innovation within the brand’s supply chains and enhancing store operations during his time with the company.
“In the midst of various challenges, Laxman has remained sharply focused on enhancing the business to better serve our customers and partners. We wish him all the best and are confident he will achieve remarkable things in the future,” stated Mellody Hobson, chair of the Starbucks board.
“On behalf of the board, I would like to express our heartfelt gratitude to Laxman for his significant contributions to Starbucks and his commitment to our team and brand,” Hobson continued.
The leadership changes at Starbucks occur during a critical period when the American coffeehouse giant is striving to revitalize its business amid widespread sales declines reflected in its latest financial results.
Starbucks has pointed to declining consumer sentiment and challenging market conditions in China as contributing factors to its difficulties.
Starbucks has announced a leadership change, appointing Brian Niccol as the new CEO, set to take over on September 9, 2024. Until then, Rachel Ruggeri, the company’s chief financial officer, will step in as interim CEO. In addition, Mellody Hobson, the chair of Starbucks’ board, will assume the role of lead independent director, according to a press release from the company.
In a recent press release, Starbucks revealed that Brian Niccol will succeed Laxman Narasimhan as CEO on September 9, 2024. Rachel Ruggeri, the current CFO, will take on the role of interim CEO during the transition period. Meanwhile, Mellody Hobson, who chairs the board, will take on the responsibilities of lead independent director.
Starbucks is set to undergo a leadership transition as Brian Niccol is appointed to take over as CEO on September 9, 2024. Until that date, Rachel Ruggeri, the CFO, will act as interim CEO. Additionally, Mellody Hobson, the board chair, will step into the position of lead independent director, as announced in a company press release.
