Starbucks ousted CEO Laxman Narasimhan in August 2024 after just 17 months due to declining sales, falling stock prices, and pressure from investors. His tenure was marred by weak performance in the US and China, alongside operational issues with mobile orders. He was replaced by former Chipotle CEO Brian Niccol.
Why was Starbucks CEO fired? Laxman Narasimhan lost his job in August 2024 after just 17 months running the coffee giant. The board pushed him out because sales kept falling, stores couldn't handle mobile orders, and the stock dropped 20% under his watch.
Following a drift of customers away from the chain and two disastrous earnings reports, Starbucks' board ousted then-CEO Laxman Narasimhan and poached Brian Niccol from Chipotle , where he led a turnaround after the burrito chain's foodborne illness scandal.
As I've talked with Sara and Arthur about these new roles, and what is right for them, they have both made the decision to leave Starbucks: We are splitting Sara's role in two. Sara believes this is the right decision for the company, but that neither new role was right for her.
Did Starbucks lose $30 billion after hiring McKinsey?
Starbucks lost $30 billion after hiring a McKinsey consultant. It took them 17 months to finally push him out. An expensive lesson. Starbucks believed a strategy genius could fix the company.
Starbucks CEO Laxman Narasimhan Sacked: What Went Wrong?
Why are people boycotting Starbucks now?
The strike kicked off on Starbucks' "red cup day," which marks the start of the holiday season at the coffee chain. Workers are demanding better pay, improved staffing in stores, and a resolution of hundreds of unfair labor practice charges filed against the company.
Starbucks' new CEO Brian Niccol reportedly earned a compensation package worth up to $95.8 million for his work between September and December 2024—equivalent to 14,738,462 pumpkin spice lattes—compared to $14,674 for the coffee chain's average worker. But Niccol isn't alone or even in the minority.
He was the last major individual franchise owner of Starbucks and owned over 125 stores. Magic said the sale of the 125 Starbucks stores netted him incredible profits, but gave him the money needed to help bid on the Los Angeles Dodgers in 2012 when the team was valued at over $2 Billion.
That's the number of rejections he received. 242 people told Howard Schultz No when he tried to raise the money to begin his Starbucks journey in Seattle. His decision to press on in the face of all that rejection was the beginning of making Starbucks an International behemoth. Vision.
Howard Schultz wanted to buy it back but needed funds. Another Seattle investor bid $4M, threatening Schultz's deal. Desperate, he turned to Bill Gates Sr., who stepped in and helped secure the purchase. Without that intervention, Starbucks might never have become the global coffee giant it is today.
The coffee chain was once wildly popular, but worse drinks, stealthy price hikes, and excessive wait times have left customers fed up. And it's all about to hit a boiling point.
Led by Chief Data Officer Eric Hoffmann with a big assist from Data Analyst Colin Weaver, Farient's research put hard numbers to that reality, finding that forced-out CEOs at major U.S. companies walked away with a median $6.2 million last year, while incoming leaders secured sign-on packages averaging $9 million.
Since leaving Starbucks, Howard has turned his attention with his wife Sheri to ways to create greater opportunity, accessible to all. Together they co-founded the Schultz Family Foundation, focusing on helping young people successfully navigate the transition to adulthood.
Starbucks CEO Laxman Narasimhan has stepped down after 17 months in the role. His tenure at the company was tainted by falling sales, union clashes, and activist investors. One analyst said his exit from the top role was "not surprising."
200 Stars may be redeemed for one (1) of the following items: any handcrafted beverage (such as a latte or Frappuccino® blended beverage) OR any hot breakfast item (such as a breakfast sandwich or oatmeal). All beverages must be standard menu-sized items.
Schultz emphasized the importance of creating a culture that aligns with the company's values and resonates with customers. 3. People First Schultz consistently prioritized employees, treating them as partners rather than subordinates.
Magic Johnson's A Billionaire — Joining Elite Club Of Michael Jordan, LeBron James, And Tiger Woods. The NBA Hall of Famer is only the fourth athlete to be identified as a billionaire by Forbes.
Shaq Missed A Deal Of A Lifetime With Starbucks – Says Because Growing Up He's 'Never Seen A Black person Drink Coffee' Shaquille O'Neal is known for his slam dunks on and off the court, but he passed on one major opportunity that still stings today – a deal with Starbucks (NASDAQ:SBUX).
Employees walking off the job came after union baristas announced last week that they had authorized an “open-ended unfair labor practice strike.” The labor union also accused Starbucks of not budging on its demands for better staffing, higher pay and resolving hundreds of unfair labor practice charges.
McDonald's has surpassed Starbucks to become the world's most valuable restaurant brand, according to a report by global brand valuation consultancy Brand Finance. In 2025, the McDonald's brand rose 7 per cent to US$40.5 billion to overtake Starbucks for the first time since 2016.
At the top of the list: Warner Bros. Discovery's David Zaslav, who received $246 million in 2022 even though the company's stock fell 60% in the same year and roughly 40% of shares voted against his pay package.
Starbucks lost approximately $11-$12 billion in market value in late 2023 due to a combination of factors, primarily widespread boycotts related to the Israel-Gaza conflict, slowing consumer spending (especially among lower-income customers), and weaker holiday sales, leading to investor concern about declining sales and reduced profits, with the company's stock hitting a 21-month low.
