Starbucks CEO leaves due to falling sales and scandals

By: Trademagazin Date: 2024. 08. 14. 11:23

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After just two years, Starbucks CEO Laxman Narasimhan is stepping down as a result of falling sales and scandals surrounding the company. According to a BBC report, Starbucks sales have been hit hard by price increases and boycotts related to the war in Gaza, which have led to a drop in the company’s global sales.

Narasimhan will be replaced by Brian Niccol, the former head of the Mexican fast food chain Chipotle. Starbucks shares rose more than 20 percent on news of the leadership change, suggesting investors are hopeful about the company’s new direction.

Global sales fell 3 percent in the second quarter of the year, especially in the U.S. and Chinese markets, according to Starbucks’ latest financial report. The company has come under fire for long wait times and drastic price hikes. After the closures due to the Covid-19 epidemic, Starbucks sales did pick up, but conflicts with American workers, many of whom wanted to join a union, further complicated the situation.

The situation worsened when the company sued its own union over a social media post in solidarity with the Palestinians, which sparked a worldwide boycott of Starbucks. The company defended itself by saying that the public had been misinformed about its position and issued a statement condemning the violence in the area.