Howard Schultz Is Leaving His CEO Post Early. Here's What's Next For The Coffee Giant
Starbucks CEO Howard Schultz stepped down from his leadership position on March 20 in the face of mounting legal scrutiny over his union-busting efforts. This concludes Schultz's third stint as CEO of the world's largest coffee chain, having previously served in the position from 1986 to 2000 and from 2008 to 2017. His most recent turn at the helm started just over a year ago on March 16, 2022, when Schultz replaced retiring CEO Kevin Johnson.
The latest departure isn't exactly a surprise — Schultz was announced as an interim CEO this time around — but it does come earlier than expected. He had previously declared his intentions to step down on April 1, putting his exit nearly two weeks ahead of schedule, according to Yahoo! Finance.
The coffee chain has been under fire since November 2022, when thousands of Starbucks employees went on strike in defense of their right to unionize, something Schultz has allegedly fought against. As of the time of this writing, 290 Starbucks locations have voted to unionize, but none have been able to reach a contract with the company. The coffee giant has been accused of intimidating and wrongfully terminating employees who participated in unionization efforts, and the National Labor Relations Board ruled on March 1 that Starbucks violated multiple federal laws in its alleged union-busting efforts. A week later, Schultz agreed to testify before the United States Senate Committee on Health, Education, Labor, and Pensions (HELP) on March 29.
Laxman Narasimhan is the new CEO of Starbucks
Replacing Howard Schultz as Starbucks CEO is Laxan Narasimhan, a new face at the company. Narasimhan joined Starbucks in October 2022, with plans already in place for him to succeed Schultz. Prior to joining Starbucks, Narasimhan served as the chief executive of Reckitt, which owns health and hygiene brands such as Mucinex, Durex, and Lysol. In that role, he received praise for his handling of the COVID-19 pandemic and for guiding the company through the United States' baby formula shortage of 2022. He has previous experience in the food and beverage industry as well, serving as the chief commercial officer of PepsiCo, which has an established relationship with Starbucks (the two companies have partnered to produce ready-to-drink coffee).
On the day of his departure as interim CEO, Schultz released a public letter addressing Starbucks leadership. In it, he highlights the company's "partners" (Starbucks' preferred term for its employees), declaring them "the heart and soul of our company" and compelling company leaders to "serve them well."
The warm tone of Schultz's letter may seem ironic, considering the fact that his departure comes as Starbucks faces more than 500 charges filed by employees with the National Labor Relations Board, according to CNBC. Although he is stepping down as CEO, Schultz will remain a force in the company as a member of its board of directors. Narasimhan, who will lead the company's annual shareholders' meeting this week, has not publicly stated his position on unionization.