Schultz’s surprise decision to step aside as the leader of Starbucks sent the stock sinking 3% in after-hours trading on Thursday.
Starbucks said Schultz isn’t going away completely. Effective April 3, he will become executive chairman, where he will focus on innovation, the design of Starbucks locations and the company’s social impact initiatives.
Current chief operating officer Kevin Johnson, a tech industry veteran, will replace Schultz as CEO.
“This is a good thing. I’m not leaving the company,” Schultz told CNN’s Poppy Harlow by phone on Thursday.
Even though Schultz hadn’t telegraphed the move, the CEO said he had been planning the move for at least a year.
Asked if he’s going to Washington, Schultz laughed and said, “No, I’m not going to Washington.”
Instead, Schultz emphasized a desire to focus on the company’s social impact initiatives.
“Given the state of things in the country, there is a need to help those left behind,” Schultz told CNN.
Separately, in a conference call, Schultz said Johnson brings “unparalleled understanding of market dynamics” and he deserves a “tremendous amount of credit” for the company’s recent record results.
Schultz joined Starbucks in 1982 as director of retail operations and he helped turn the company into a retail powerhouse and an iconic American brand. He stepped down as CEO in April 2000 to concentrate on executing the company’s global strategy.
But Starbucks struggled without him at the helm and seemed to have lost its way. Schultz returned as CEO in 2008 and helped guide the coffee giant through the Great Recession and get it back on track. Today,
Starbucks is valued at $84 billion and it has more than 24,000 retail stores in 70 countries.
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