In a surprising move, Michael Conway, Starbucks (NASDAQ:SBUX) North America CEO has resigned after just six months in the role.
What happened: Conway, who took over in April, informed the company of his decision last week, according to a filing with the Securities and Exchange Commission. He will remain with the company until November 30 to help with the leadership transition, ending his 11-year tenure at Starbucks, Business Insider reported Tuesday.
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Prior to his role as CEO of North America, Conway served as group president of international development and distribution channels and president of Starbucks Canada. His appointment is part of a reorganization effort led by former CEO Laxman NarasimhanBloomberg noted in March.
Rather than appointing a new CEO for North America, Starbucks announced that Sara Trillingthe company’s North American president, will oversee retail operations across the region. Trilling has been with Starbucks for 22 years and previously managed 3,500 stores as senior vice president of its northern division.
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According to the Wall Street Journal, the company wants to improve the efficiency of its decision-making by streamlining its management structure. Conway’s departure follows other significant changes in management, including the recent appointment of Brian NiccolFormer Chipotle CEO to serve as Starbucks’ new CEO.
Starbucks stores in North America have faced operational challenges, with complex beverage orders, rising prices and variable traffic impacting staff and profitability. Niccol plans to reorganize operations and focus on the customer experience, he said last week.
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Why it matters:The leadership change comes amid a series of strategic changes at Starbucks. In March, the company announced a new geographic leadership structure to support global functions, naming Conway as CEO of North America to lead the effort.
In August, the appointment of Brian Niccol The new CEO boosted Starbucks’ valuation by more than $15 billion in a single day. Niccol, known for his successful tenure at Chipotle, aims to guide Starbucks through its current challenges and improve the customer experience.
On his second day as CEO, Niccol laid out his vision for reconnecting Starbucks with its community coffeehouse roots. He stressed the need for comfortable seating and a clear distinction between “grab and go” and “dine-in” services to enhance the in-store experience.
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Image by Sahin Sezer Dinçer from Pixabay.
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This article Starbucks North America CEO Michael Conway Steps Down After Just 6 Months in Role originally appeared on Benzinga.com
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