Starbucks on Tuesday announced that Laxman Narasimhan stepped down as CEO with immediate effect after just 16 months in the role. The decision has been attributed to declining financial performance and internal conflicts over labour issues. Brian Niccol, who is currently heading Chipotle, has been tapped to replace Narasimhan. He will assume office on September 9. Until then, Rachel Ruggeri, CFO of Starbucks, will serve as the company’s interim CEO. Mellody Hobson, Starbucks board chair, will become the lead independent director.
The news of Narasimhan’s departure sparked discussions on social media platforms, with many linking his ouster to a recent interview where he admitted to ending his workday by 6 PM to prioritise work-life balance.
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In his interview with Fortune Magazine, ousted Starbucks CEO Narasimhan emphasised maintaining a healthy work-life balance. He told the American business magazine that he typically concluded his workday by 6 pm and that any after-hours commitments required urgent attention.
“I am very disciplined about balance. 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," Narasimhan said during the interview.
The 57-year-old added, “I do schedule about 150 to 250 minutes of personal exercise over the course of the week. Sometimes, I find myself catching up on a Sunday, I must confess but I do have time and I find myself being driven by that time so that at 7 pm on Sunday I hit 250 minutes."
Watch Narasimhan’s interview with the magazine here:
Check how people reacted to Narasimhan being replaced as the CEO of Starbucks here:
“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 an individual.
Another added, “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."
“WOW. Starbucks just stole Chipotle’s CEO. Laxman Narasimhan is out, Brian Niccol is in," commented a third.
A fourth joked, “I wonder if he was sent notice after 6 pm."
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Starbucks, in a statement, praised Brian as a “culture carrier" and believes that he will be a “transformative leader" for the company.
“I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners," said Niccol ahead of assuming the role.
“I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe. 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.
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