What's Happening?
Kevin Johnson, who served as the CEO of Starbucks from 2017 to 2022, announced his retirement, marking the end of his tenure at the Seattle-based coffee giant. Johnson, who has been with Starbucks for 13 years, will transition from his role on April 4, 2022, and continue as a special consultant to the company and Board of Directors through September. Howard Schultz, the founder and former CEO, will return as interim CEO with a compensation of $1, while the company searches for a permanent successor. Schultz previously led Starbucks from 1986 to 2000 and again from 2008 to 2017. The leadership transition comes amid efforts by Starbucks employees to unionize across the United States, with more than 120 stores filing union petitions.
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Why It's Important?
The retirement of Kevin Johnson and the return of Howard Schultz as interim CEO is significant for Starbucks as it navigates a period of transformation and unionization efforts. Schultz's return may stabilize the company during this transition, given his extensive experience and previous leadership roles. The unionization movement among Starbucks employees reflects broader labor trends in the U.S., potentially impacting Starbucks' operational strategies and employee relations. The leadership change could influence Starbucks' approach to these challenges, affecting its reputation and business model.
What's Next?
Starbucks plans to find a permanent CEO by the fall, with Schultz focusing on innovation and onboarding the next leader. The company will continue to address unionization efforts, with the National Labor Relations Board recently filing a complaint against Starbucks for alleged retaliation against employees seeking to unionize. The leadership transition may affect Starbucks' strategies in dealing with these labor issues and its future growth plans.
