Starbucks has undergone a significant leadership change by appointing a new chief financial officer as part of its broader strategy to revitalize the company. Cathy Smith, who has served as Nordstrom’s CFO since earlier this year, is set to join Starbucks within the coming month, as revealed by the company’s Chairman and CEO, Brian Niccol, in a message to employees. Smith brings a wealth of experience from her previous roles as CFO of both Target and Walmart International.
Smith will succeed Rachel Ruggeri, who will be departing from Starbucks. Niccol highlighted Smith’s vast experience in the realms of retail, global operations, and corporate turnarounds as instrumental to Starbucks’ future plans. Ruggeri, noted for her nearly two decades of service to the company, will remain for a period to ensure a smooth transition in leadership.
In his letter, Niccol commended Ruggeri for her dedication to Starbucks, emphasizing her integrity, results-oriented approach, and the importance she placed on maintaining the company’s culture. Meanwhile, he reaffirmed Smith’s qualifications and her track record in steering retail companies through significant transformations.
Niccol, who joined the leadership team last autumn, is focused on revamping Starbucks’ sales performance through a series of measures aimed at enhancing service speed, simplifying the menu, and restoring the ambiance of a neighborhood coffeehouse. A notable strategy included reversing the open-door policy, now limiting in-store access and restroom use to paying customers only.
In addition to restructuring the company’s executive lineup to foster efficiency and accountability, Niccol has made several strategic decisions aimed at streamlining processes. Earlier this year, the president of Starbucks’ North America division stepped down following a structural change that split her role into two distinct positions: one concentrated on existing store operations and another focused on new store development.
Moreover, in recent developments, Niccol rolled out a plan to reduce the workforce by laying off 1,100 corporate employees worldwide. These changes highlight Starbucks’ commitment to restructuring and reinvigorating its brand to better meet the evolving needs of its customers and stakeholders.
