In a surprising move, Starbucks (NASDAQ:SBUX) North American CEO Michael Conway has resigned after just six months on the job.
Background: Conway, who began her role in April, informed the company of her decision last week, according to a Securities and Exchange Commission filing. Business Insider reported on Tuesday that she will remain with the company until Nov. 30 to help with the leadership transition, wrapping up her 11-year tenure at Starbucks.
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Prior to taking on the North American CEO role, Conway served as group president of international and channel development and president of Starbucks Canada. Bloomberg reported in March that her appointment was part of a restructuring by former CEO Lakshman Narasimhan.
Instead of appointing a new CEO for North America, Starbucks announced that Sarah Trilling, the company’s president of North America, will oversee retail operations across the region. Trilling has been with Starbucks for 22 years and previously served as senior vice president of the company’s northern division, overseeing 3,500 stores.
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According to The Wall Street Journal, the company is looking to streamline its leadership structure to make decision-making more efficient. Conway’s departure follows other significant leadership changes, including the recent appointment of former Chipotle CEO Brian Niccol as Starbucks’ new CEO.
Starbucks stores in North America have been hit by operational challenges including more complicated drink ordering, rising prices and fluctuating customer traffic that have affected staffing and profitability. Nicol said last week that the company plans to revamp operations and focus on customer experience.
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Why it matters: The leadership change comes amid a series of strategic shifts at Starbucks. In March, the company announced a new geographic leadership structure to support its global functions and named Conway CEO of North America to spearhead the effort.
Starbucks’ valuation increased by more than $15 billion in just one day in August when Brian Niccol was named CEO. Known for his successful tenure at Chipotle, Niccol is looking to lead Starbucks through its current challenges and improve the customer experience.
The story continues
On his second day as CEO, Nicol outlined his vision to reconnect Starbucks to its roots as a neighborhood coffeehouse. To improve the in-store experience, Nicol emphasized the need for comfortable seating and a clear distinction between “to-go” and “dine-in” service.
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This article Starbucks North America CEO Michael Conway resigns just six months into the job originally appeared on Benzinga.com
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