Starbucks announced on Tuesday that its Indian-origin CEO, Laxman Narasimhan, has been replaced by Brian Niccol, the current chief executive at Chipotle. Narasimhan, who took over as CEO in March 2023, has stepped down from his role and from the Starbucks board "with immediate effect," according to the coffee giant's official statement.
Laxman Narasimhan, a seasoned professional with a background in PepsiCo and other consumer brands, had a brief but impactful tenure at Starbucks. He initially worked closely with longtime Starbucks CEO Howard Schultz before taking the reins of the company. During his leadership, Narasimhan was recognized for driving innovation in the company’s supply chains and improving store operations.
Just last month, Narasimhan emphasized the importance of work-life balance in an interview with Fortune magazine. He mentioned that he "almost never" worked past 6 pm and was very strict about maintaining his personal time. "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 said during the interview.
This quote has since gone viral on social media, with many speculating that it may have played a role in his departure. Some users even claimed that Narasimhan was "fired," although Starbucks has not confirmed these rumours.
One user remarked, "If you make such a statement when the stock price is up, you seem like a genius. But if the stock price falls... well, you get fired." Another added, "Laxman is a fitting name."
A third user questioned, "Was it really the 6 PM rule, or was it just a case of a CEO who didn’t understand the product or market? Maybe it’s a bit of both, or maybe none of it—who knows?"
In its statement, Starbucks praised Narasimhan’s contributions, noting his focus on improving the business during challenging times. "Laxman has been laser-focused on improving the business to meet the needs of our customers and partners. We all wish him the very best and know he will do great things in the future," said Mellody Hobson, Starbucks board chair.
The leadership change comes as Starbucks faces difficulties, including a drop in sales and challenges in key markets like China. The company is now looking to turn things around under new leadership.
Brian Niccol, who has successfully led Chipotle since 2018, is expected to bring his experience in the fast-food industry to Starbucks as it navigates these challenging times.
