Indian-origin CEO Laxman Narasimhan leaves Starbucks after just a year, company gives this information

Starbucks, which is facing weak demand and dissatisfied investors, said on Tuesday that the company's Chief Executive Officer Laxman Narasimhan is leaving the post after being in the job for more than a year.

According to the report of the news agency AP, Seattle-based coffee giant Starbucks of America has said that Chipotle's President and CEO Brian Niccol will take over as Starbucks' President and CEO on September 9. After this announcement, Starbucks' shares jumped by more than 13% before the market opened on Tuesday.

Narasimhan was the longtime CEO of PepsiCo and, more recently, CEO of the UK-based consumer health company Reckitt. He took on the role of Starbucks CEO in March 2023, succeeding longtime Starbucks CEO and Chairman Emeritus Howard Schultz. He had come out of retirement in 2022 to work as interim CEO for the company.

Investors very quickly lost confidence in Narasimhan while the sales figures of the company continued to weaken in the recent past. Apart from this, many other challenges faced the company. These include competition from low-cost competitors in China and boycott of the company in the Middle East and elsewhere due to its alleged support for Israel.

According to Mellody Hobson, the chairman of the board, under Nicole—who took the reins as CEO in 2018—much has been done to change Chipotle.