Starbucks CEO Kevin Johnson to step down among severe unionization drives

Johnson, a graduate in business administration from Mexico State University, worked at Microsoft before joining the Starbucks board in 2009. Howard Schultz, the then CEO, had valued the technological knowledge of Johnson and the latter became a top lieutenant by 2015 before heading the world's biggest coffee chain. Hobes, Starbucks board chairwoman, reported that Kevin had already communicated his retirement after the "pandemic wound down". The company has started preparing a list of potential candidates for the post, which Schultz would hold provisionally. Howard Schultz will be serving his third term as CEO as Johnson steps down on April 4 while maintaining an advisory role. Schultz, 68, will be serving his third as CEO.

The Covid-19 Pandemic had its first major on Starbucks early in 2020 when the company had to close its cafes in China, and by June 2020, the US-based coffee chain had decided to close hundreds of its home stores to make way for more to-go and drive-through outlets. Stocks fell and are down 24% in the past 12 months, although Starbucks recovered from its losses and recorded $29.1 billion in sales in the last fiscal year surpassing its 2017 sales by $6.7 billion.

Unionization drives


The past year has seen a more severe unionization drive among Starbucks workers in the US than any other country as many workers moved for better pay and work conditions, and despite Johnson's appeal that they maintain a direct relationship with the company, more than 130 cafes out of the 9000 have petitioned to unionize. Starbucks investors, led by Trillium Asset Management, have opined that the company should maintain a neutral policy and negotiate with unionized cafes with good faith, to which the company remains silent.

Starbucks had announced a recent boost in pay, following which the company's stocks fell as announcements of profit reductions were made by CEO Johnson.

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