PC: Asianet Newsable
Laxman Narasimhan has been chosen by Starbucks to be its new CEO.
On October 1, Narasimhan will take over as CEO of Starbucks. In April, he will formally start in his position and become a member of the board of directors for the business.
Narasimhan’s resignation from the Reckitt Benckiser Group, where he most recently served as CEO, was announced earlier on Thursday.
Throughout the transition, Howard Schultz, who temporarily took over Starbucks from departing CEO Kevin Johnson this spring, will continue in his role as interim CEO. He will still serve on the Starbucks board.
Narasimhan assumes the position at a crucial time for Starbucks.
The business is attempting to stop a surge of unionisation in the United States. Meanwhile, the company’s operations in China, a vital market, have been hampered by stringent Covid-19 limitations.
In the six months prior to his official appointment, Narasimhan will spend time with Schultz, other business executives, staff members, and clients to familiarise himself with the company’s recent reinvention plan, which Schultz recently unveiled after declaring that the organisation requires an overhaul.
In a July open letter, Schultz stated that “the Starbucks business as it is constructed today is not set up to completely serve the growing habits, demands, and expectations of our partners or customers.” It is not intended for the future that we see for our own lives and the lives of the people we serve.
According to what Schultz stated at the time, his change strategy calls for remodelling stores and “radically upgrading” the employee experience. Since then, the corporation has changed, including closing a few outlets due to safety issues.
As Starbucks reinvents itself and makes investments in partner and customer experiences, Narasimhan said in a statement on Thursday that he is “humbled” to join the company and that it will help it better address the changing needs it is facing right now.
Schultz asserted Narasimhan is the ideal candidate for the position on Thursday.
He is a strategic and transformative leader with extensive expertise in creating strong consumer brands, according to Schultz. He is the kind of leader we needed.
Reckitt Benckiser, Narasimhan’s former employer, is a UK-based manufacturer of various hygiene and health goods, including Lysol, Mucinex, and Durex condoms. In 2019, he was appointed CEO of the multibillion-dollar business.
In a statement released earlier on Thursday, the British company stated that “Laxman has decided to go back to the United States for personal and family reasons and has been approached for a position that enables him to live there.”
Narasimhan had a number of positions at PepsiCo (PEP) before to joining Reckitt Benckiser, including worldwide chief commercial officer. He worked as a senior partner at McKinsey, specialising in retail and consumer.
Narasimhan is “an exciting leader,” according to Mellody Hobson, the independent chair of the Starbucks board. She also noted that “his profound, hands-on expertise implementing strategic reforms at global consumer-facing firms makes him the appropriate option.”
The appointment of Narasimhan was announced prior to Starbucks’ annual investor day on September 13.