After an absence of four years, billionaire Howard Schultz is returning as CEO at Starbucks, the coffee chain he made into a huge success. The stock market is cheering the (temporary) comeback, but the unions are not…
Social unrest
Current CEO Kevin Johnson unexpectedly announced that he will retire as of 4 April, after thirteen years of working for the coffee chain – the last five as CEO. Despite the difficult conditions in recent years, the manager was able to present a decent report card, but recently he was faced with increasing social unrest at the company.
A wave of criticism about the working conditions on social media resulted in more than a hundred American locations announcing union elections, the New York Times writes. That, in turn, made shareholders uneasy. It is possible that this is the reason that Johnson is resigning, even though he is still only 61.
Controversial views
In any case, Starbucks appears unprepared for a change at the top: the coffee chain does not expect to find a suitable successor until the autumn. And so an old acquaintance reappears: former CEO Schultz (68) is temporarily taking over the helm again, although he retired back in 2018 after a rich career as CEO and chairman.
Schultz is the man who took over the company in 1987 and developed it into a global phenomenon. However, he is not universally liked: the man regularly took controversial positions on sensitive topics such as immigration, gender issues and gun legislation. He is even said to have considered running as an independent presidential candidate. Whether peace will now return to the company therefore remains to be seen: Schultz is not exactly a good friend of the trade unions. The share price, on the other hand, went significantly higher after the announcement.
Starbucks is good for a turnover of almost 30 billion dollars (more than 25 billion euros) with some 32,000 coffee bars in eighty countries.
