Starbucks announced on Tuesday that Laxman Narasimhan has stepped down as CEO after just 16 months in the role, effective immediately. The decision follows a period of declining financial performance and internal conflicts over labor issues within the company.
Brian Niccol, the current CEO of Chipotle, has been appointed as Narasimhan’s successor and will officially take over on September 9. In the interim, Rachel Ruggeri, Starbucks’ Chief Financial Officer, will serve as the acting CEO, while Mellody Hobson, the chair of the Starbucks board, will assume the role of lead independent director.
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Narasimhan’s sudden departure has sparked widespread discussion on social media, with many linking it to a recent interview in which he emphasized the importance of maintaining a healthy work-life balance. Speaking to Fortune Magazine, Narasimhan revealed that he typically concluded his workday by 6 PM, reserving after-hours time strictly for urgent matters.
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Starbucks CEO Laxman Narasimhan recently said that he doesn’t work past 6pm 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. pic.twitter.com/ATEhYTFddB
— Triple Net Investor (@TripleNetInvest) August 13, 2024
“I am very disciplined about balance,” Narasimhan said in the interview. “If there’s anything after 6 PM, and if 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’ll just wait for another day.”
The 57-year-old former CEO also mentioned his commitment to personal fitness, scheduling 150 to 250 minutes of exercise each week, often catching up on Sundays.
Reactions to Narasimhan’s exit have been mixed, with some social media users speculating that his comments on work-life balance may have contributed to his ouster, particularly given Starbucks’ recent financial challenges. One user remarked, “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.”
Others noted that such statements might be perceived differently depending on the company’s performance. “If you say something like this when the stock price is doing well, you sound like a genius. But if it’s not doing well, you get fired,” another user commented.
Niccol, who has been praised by Starbucks as a “culture carrier,” expressed enthusiasm about his new role. “I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners,” he said.
Niccol also highlighted his admiration for Starbucks’ brand, culture, and commitment to fostering human connections globally. “As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values,” he added.
Starbucks is optimistic that Niccol’s leadership will bring transformative change to the company as it navigates through its current challenges.
