Starbucks recently made headlines after fired its Indian-origin CEO Laxman Narasimhan and quickly replacing him with Brian Niccol who is the chief executive of Chipotle. Narasimhan’s departure was sudden as he stepped down from his role as CEO and left the Starbucks board “with immediate effect” according to an official statement from the company.
Laxman Narasimhan who was a seasoned professional with experience at PepsiCo and other consumer brands took the charge at Starbucks in March 2023. He had previously worked closely with Howard Schultz who was Starbucks’ longtime CEO during a transition period. Narasimhan was known for his emphasis on work-life balance. In a recent interview with Fortune magazine he revealed that he “almost never” worked past 6 pm telling the importance of spending time with family.
Narasimhan was disciplined about ending his workday at 6 pm. He even mentioned that anyone seeking his attention after that time had to have a very compelling reason. He believed in maintaining a strict balance between work and personal life setting a high standard for things that could interrupt his family time.
Viral Reaction to Narasimhan’s Firing
After Starbucks fired Indian-origin CEO Laxman Narasimhan therefore his interview from July 7 gained traction on social media. Many users speculated that his work-life balance approach specially his refusal to work past 6 pm might have played a role in his dismissal. The quote from the interview where Narasimhan insisted that any post-6 pm matters had to be “important” became a viral sensation.
Social media was abuzz with opinions as some users criticized Narasimhan suggesting that his approach was unsuitable for a CEO of a global company like Starbucks. Others joked about his name or questioned whether his work habits were a factor in the company’s recent struggles.
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Starbucks’ Official Statement
Despite the viral backlash Starbucks spoke highly of Narasimhan in their official statement. The company acknowledged his efforts to innovate within their supply chains and improve store operations during challenging times. Mellody Hobson who is Starbucks’ board chair expressed his appreciation for Narasimhan’s contributions and wished him well in his future endeavors.
Starbucks has been facing difficulties particularly in China where weakening consumer sentiment has impacted sales. The company has been under pressure from activist investors including Elliott Investment Management to improve its performance. Starbucks fired Indian-origin CEO Laxman Narasimhan seems to be part of Starbucks’ broader efforts to turn around its business.
Brian Niccol: The New CEO
Brian Niccol has taken over as Starbucks’ new CEO and he brings a wealth of experience from his time at Chipotle and Taco Bell. Niccol has been leading Chipotle since March 2018 and has been instrumental in driving the company’s growth. He also served as the CEO of Taco Bell before joining Chipotle and has held positions at other major companies like Pizza Hut and Procter & Gamble.
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