• Source:JND
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Starbucks on Tuesday announced the appointment of its new CEO Brian Niccol, replacing Indian-origin Laxman Narasimhan. This change comes after a year when Narasimhan took over as the CEO of Starbucks. According to the American coffeehouse, Brian Niccol will officially assume the office on September 9, while the company's CFO, Rachel Ruggeri, will act as interim CEO until then.

In a blog post, the company conveyed its confidence in Niccol's ability to lead change, stating, "Our board believes he will be a transformative leader for our company, our people, and everyone we serve globally."

Niccol also expressed his excitement about joining Starbucks, saying, "I am thrilled to join Starbucks and grateful for the chance to help guide this remarkable company, alongside hundreds of thousands of dedicated partners."

Narasimhan, a seasoned executive with experience at PepsiCo and other consumer brands, assumed the CEO role in 2023 after spending time collaborating with Howard Schultz, the longtime Starbucks CEO who had been serving as interim leader.

Why Was Laxman Narasimhan Fired? 

Starbucks had previously pointed to declining consumer confidence and challenging market conditions in China as contributing factors to its difficulties.

Neil Saunders, managing director at GlobalData, explained the reason for removing Narasimhan as Starbucks CEO saying, “The replacement of Laxman Narasimhan as Starbucks CEO is the result of growing dissatisfaction, particularly from activist investors, over the way the chain has been run." 

"While some of the slowdown can be attributed to a more sluggish consumer cutting back, much is also the result of a worsening store experience and a lack of innovation in areas like food," he added.

Starbucks' falling revenue has also been one of the reasons for ousting Narasimhan. According to Forbes, Starbucks' third-quarter revenue saw a 4 per cent decline in comparable store sales, following a 3 per cent drop in the previous quarter. Despite an 11.5 per cent increase in full-year revenue for 2023 (ending in September), the brand is facing significant declines. 

Narasimhan is also facing criticism for his comments that he made in 2023 during an interview with Fortune Magazine. He had said, “I never work past 6 pm to maintain a work-life balance.”

"I am very disciplined about balance. If there's anything after 6 pm and I am in town, it's got to be a pretty high bar to keep me away from the family. Anybody who gets a minute of time after that better be sure that it's important. Because if not it will just wait for another day," he added.

Netizens have been claiming that this is the probable reason that he got “fired” from Starbucks. “Starbucks CEO Laxman Narasimhan recently said that he doesn't work past 6 pm and that if anyone at Starbucks gets a minute of his time after 6 pm, they "better be sure that it's important." He was just fired today,” wrote a user on social media platform X. 

Indian Connection Of Laxman Narasimhan

Narasimhan is an Indian-American business executive and former CEO of Reckitt. Narasimhan was born in Pune, India, into a Hindu family. He completed his initial studies in India before moving to the USA. He holds a degree in mechanical engineering from the College of Engineering, Pune, an MA in International Studies, and an MBA from the University of Pennsylvania.