Starbucks CEO quits early ahead of D.C. quiz
Howard Schultz announced his immediate departure as Starbucks CEO on Monday, two weeks ahead of schedule.
Schultz, 69, was supposed to leave April 1. Instead, he stepped down days before he’s scheduled to appear on Capitol Hill to discuss Starbucks’ alleged labor violations.
“Today, I am entrusting you all with Starbucks — something that holds a place in my heart second only to that of my beloved family,” Schultz wrote in a public letter that was also sent to employees. “As I turn Starbucks over to you now, know that you have my utmost confidence, trust and love. You all are the future of Starbucks.”
Laxman Narasimhan was announced as CEO-in-waiting in September and immediately took over Monday.
Schultz did not found Starbucks, but his name became synonymous with the company during his three stints as CEO: first from 1986 to 2000, again from 2008 to 2017 and yet again from April 2022 until Monday.
“Starbucks truly has been my life’s work,” Schultz wrote in Monday’s letter.
Most recently, Schultz was criticized for his response to a nationwide unionization effort at Starbucks stores. The Senate Health, Education, Labor and Pensions Committee planned to subpoena Schultz before he agreed earlier this month to testify.
“In America, workers have the constitutional right to organize unions and engage in collective bargaining to improve their wages and working conditions,” Sen. Bernie Sanders (I-Vt.) tweeted. “Unfortunately Starbucks, under Mr. Schultz’s leadership, has done everything possible to prevent that from happening.”
Schultz’s congressional testimony remains scheduled for March 29, but he will no longer be in charge of the more than 15,000 Starbucks locations across the U.S. when he speaks.
In a 1997 book, Schultz wrote that he felt if employees had “faith in me and my motives, they wouldn’t need a union.” He reiterated that belief in November 2021, before the first Starbucks store voted to unionize, and when he was not in charge of the company.
“No [employee] has ever needed to have a representative seek to obtain things we all have as partners at Starbucks,” he claimed at the time. “And I am saddened and concerned to hear anyone thinks that is needed now.”