In a surprising move, Starbucks has announced the immediate replacement of its Indian-origin CEO, Laxman Narasimhan, with Brian Niccol, the current CEO of Chipotle. Narasimhan, who assumed the role last year, is stepping down from both his position as CEO and his seat on the Starbucks board.
The abrupt leadership change comes as Starbucks grapples with significant challenges, including broad declines in sales and a disappointing earnings report for April. The company has attributed its struggles to weakened consumer sentiment and difficult market conditions in China.
Background on Laxman Narasimhan
Laxman Narasimhan, born on May 15, 1967, in Pune, India, has had a distinguished career marked by a series of high-profile roles. He completed his early education in Pune and earned a degree in Mechanical Engineering from the University of Pune. Furthering his studies, Narasimhan obtained a Master of Arts in German and International Studies from the Lauder Institute at the University of Pennsylvania and an MBA in Finance from the Wharton School of the University of Pennsylvania.
Narasimhan’s career began at McKinsey & Company, where he spent 19 years advising companies across various industries, including consumer goods, retail, and healthcare, with a focus on the US, India, and Asia.
Following his tenure at McKinsey, Narasimhan joined PepsiCo, holding several prominent positions. As Global Chief Commercial Officer, he oversaw commercial strategies globally and led operations in Latin America, Europe, and Sub-Saharan Africa. He also served as CEO of PepsiCo Latin America and CFO of PepsiCo Americas Foods.
In 2019, Narasimhan became CEO of Reckitt, a global leader in consumer health, hygiene, and nutrition. His leadership was noted for advancing the company’s e-commerce initiatives and supporting the workforce during the COVID-19 pandemic.
Narasimhan joined Starbucks in October 2022 and officially took over as CEO in March 2023. Known for his commitment to work-life balance, he was recognized for maintaining a work schedule that ended by 6 pm.
As Starbucks transitions to new leadership, the company continues to navigate through challenging market conditions and aims to address the issues impacting its business.
