Starbucks Corporation has suddenly parted ways with its CEO, Laxman Narasimhan, effective immediately. This surprising decision comes during a time of declining sales and growing pressure from activist investors. Narasimhan, who took on the CEO role in April 2023, had previously served as the interim CEO and chief commercial officer.
Starbucks has named Brian Niccol, the former CEO of Chipotle Mexican Grill, as the new CEO, with him set to officially start on September 9th.
While Starbucks has not provided specific reasons for Narasimhan’s departure, industry experts believe that the company’s recent financial struggles played a key role. Starbucks has seen two consecutive quarters of declining sales, raising concerns about its ability to maintain its market dominance.
Activist investor Elliott Investment Management, which holds a significant stake in Starbucks, has been vocal about its dissatisfaction with the company’s recent performance, pushing for changes in both leadership and strategy.
Narasimhan’s exit signals a major shift for Starbucks as it works to regain its footing in a challenging market. Niccol, known for his successful tenure at Chipotle, is expected to bring new ideas and leadership to help the company recover.
