Starbucks shakes up leadership as former Chipotle chief steps in
As reported by various sources, including CNBC, Laxman Narasimhan is no longer the CEO of Starbucks. He gained particular notoriety after an interview with Fortune magazine, in which he shared his views on the balance between professional and private life.
In the notable interview, the former CEO clarified his position: "Starbucks CEO Laxman Narasimhan recently said that he doesn't work past 6 p.m. and that if anyone at Starbucks gets a minute of his time after 6 p.m., they ‘better be sure that it's important. He was just fired today."
The coffeehouse chain announced that Brian Niccol, the CEO of Mexican restaurant chain Chipotle, will replace Laxman Narasimhan. He will take over the company on 9th September. Until then, the company's CFO, Rachel Ruggeri, will manage it.
CNBC reports that the change in CEO position caused Starbucks' stock to soar by 24.5 percent. Meanwhile, the burrito chain's stocks fell by over 10 percent.
Starbucks' stocks reacted
After Narasimhan's departure, the notable interview was brought up again, but what likely sealed the former CEO's fate were the company's financial results. Starbucks' stocks fell by 21 percent during his tenure (since March 2023), not counting the rise following the announcement of changes in the top management.
Additionally, CNBC reports that Starbucks saw a 3 percent drop in sales last quarter, primarily in its largest markets, the US and China.
