Starbucks reshuffles leadership to accelerate turnaround bid
[CHICAGO] Starbucks is reorganising part of its senior ranks, looking to speed up plans to reverse a sales slump.
Mike Grams, hired last year as head of North America stores, will become chief operating officer, according to an announcement on Wednesday (Jun 4). His responsibilities will expand to include the department in charge of building and renovating stores, led by Meredith Sandland, and the supply-chain division helmed by Sanjay Shah.
The company is also fusing its global brand and global coffee teams to further emphasise coffee as the core of the company's menu, product innovation and marketing. As a result, Michelle Burns, executive vice-president of global coffee and sustainability, will report to Tressie Lieberman, the company's chief brand officer.
Starbucks shares were little changed in extended trading on Wednesday. The stock has declined 3.4 per cent so far this year, compared to a 1.5 per cent increase in the S&P 500 Index.
Starbucks is enacting the changes to accelerate its turnaround after disappointing results last quarter. Chief executive officer Brian Niccol has said the performance 'is not yet where we want it to be'.
'We are on the right path, but we need to move faster,' Niccol said in the announcement. 'We are making additional organisational changes to help bring teams closer together, strengthen leadership accountability and allow teams to move with even greater clarity and urgency.'
In other changes, chief technology officer Deb Hall Lefevre will report to Cathy Smith, the company's new chief financial officer. The move should help the company speed up the deployment of technology that could make service faster, including an algorithm that helps prioritise drink orders.
Additionally, chief legal officer Brad Lerman will leave Starbucks and assist with the search for his successor.
The company earlier this year cut 1,100 corporate jobs in a bid to remove duplication and speed up decision making. BLOOMBERG
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