In a surprise move, Starbucks has replaced Indian-origin CEO Laxman Narasimhan who is stepping down. Niccol will start in his new role on September 9, the company announced in a press release. CFO Rachel Ruggeri will serve as interim CEO until that time, it said. Niccol will be Starbucks' fourth CEO in just two years.
Narasimhan, 57, is stepping down from his role as CEO and as a member of the Starbucks board with immediate effect. “During his tenure, he improved the Starbucks partner experience, drove significant innovation in our supply chain, and enhanced our store operations,” the release said.
Narasimhan is also leaving the board. He took over Starbucks, which has a market cap of USD 105.61 billion (Rs 886390 crore) in March 2023. He has seen the coffee chain largely struggle under his purview. Most recently, the chain's sales dropped 3 per cent globally at stores open for at least a year, including a 2 per cent drop in its home North America market, CNN reported.
Who is Laxman Narasimhan?
He is an Indian-American business executive, who led Starbucks and Reckitt as CEO. He was previously chief commercial officer (CCO) of PepsiCo. He joined Starbucks as interim CEO in October 2022 and succeeded Howard Schultz as CEO in March 2023.
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Born in Pune, he earned a degree in mechanical engineering from the College of Engineering, Pune. He did an MA in International Studies from The Lauder Institute at the University of Pennsylvania. Laxman also holds an MBA in Finance from The Wharton School, University of Pennsylvania. He started his career in 1993 at McKinsey and worked there for 19 years until 2012. Narasimhan is married with two children, and lives in Greenwich, Connecticut, US.
