Starbucks CEO Laxman Narasimhan Resigns; Brian Niccol Takes Over as New Chairman & CEO

Starbucks has announced that Laxman Narasimhan won't be their Chief Executive Officer anymore. He has been with the company for less than a year, as he was positioned as CEO sometime around March 2023 and Narasimhan may also step down from the board of directors of the company. Currently, Rachel Ruggeri who is the CFO of Starbucks is acting as CEO of the company until 9 September. Brian Niccol will succeed Narasimhan as the company's new CEO, he is currently the chief executive of Chipotle Mexican Grill.

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There is no official clarification as to why Narsimahn was fired but according to speculations this is because of the declining sales and the constant pressure of leftist Investors. Starbucks has been struggling to retain its position for quite some time now because of the ongoing Israel-Palestine war and there is a global boycott moment against Starbucks because of its alleged connections with Israel.

The company faced 2 continuous declining quarters of comparable sales and this April was a disaster for Starbucks on a sales front. Starbucks China's consumer base is shrinking at an increasing rate and the market environment is becoming harsher for China. Starbucks was literally suffering this year, Their stocks fell from 20% by the time the leadership was transferred from Narasimhan.

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The news has become a topic of discussion on the internet and some internet users guessing that the statement he made in an interview with Fortune Magazine, “If anyone at Starbucks gets a minute of my time after 6 pm, they better be sure that it’s important.” explaining his philosophy of maintaining a good work and personal life balance worked as a catalyst for his removal as the company is already facing it's the downfall and its CEO making this sort of statement can be offensive to higher-ups.

On the other hand, the future Starbucks CEO Brian Niccol has currently the Ceo of Chipotle Mexican Grill since 2018 and the company has seen significant growth in his reign it appears that he is driven by investors' concerns.

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