Howard Schultz Departs from Starbucks

Howard Schultz, the former CEO of Starbucks, has announced his departure from the company’s board, according to an official statement released on Wednesday. Schultz, 70, did not provide specific reasons for his exit but expressed his commitment to support the new generation of leaders guiding Starbucks into the future in his role as chairman emeritus.

This transition is described as part of a planned shift in leadership. Schultz’s third tenure as Starbucks’ CEO concluded in March, with Laxman Narasimhan taking over the position. During his brief return as CEO, which spanned 11 months, Schultz developed a strategic vision to modernize Starbucks’ cafes, enhance relations with its baristas, and drive further sales growth. He also oversaw the launch of Starbucks Oleato, a line of olive oil-infused beverages.

However, some of Schultz’s actions during this period led to controversy, particularly his aggressive stance against baristas’ unionization efforts. This stance made him a focal point of Starbucks’ anti-union position, with groups like Starbucks Workers United and Senator Bernie Sanders criticizing the company. Schultz even faced scrutiny from a Senate committee over allegations of union busting shortly after stepping down as CEO.

Schultz made it clear before his departure that he had no intentions of resuming the role of CEO. This wasn’t his first departure from Starbucks’ board; he initially stepped down in June 2018 as part of preparations for a potential presidential run, which he later decided against. In 2017, he had already handed over the CEO position to Kevin Johnson.

Replacing Schultz on the board is Wei Zhang, who brings a wealth of experience, having previously served as a senior advisor to Alibaba and as president of Alibaba Pictures Group. Her background in the Chinese e-commerce giant is seen as valuable for Starbucks, particularly in their efforts to revitalize their business in China, the company’s second-largest market. Some trends observed in China, such as mobile ordering, have influenced changes in Starbucks’ U.S. operations.

Zhang’s career also includes roles at News Corp China, CNBC China, Bain, and General Electric. She is the third woman on Starbucks’ nine-person board, joining chair Mellody Hobson and Land O’Lakes CEO Beth Ford.

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