December 1, 2016 5:05 pm

Starbucks CEO Howard Schultz to step down

Starbucks CEO Howard Schultz speaks at the coffee company's annual shareholders meeting in Seattle.

AP Photo/Ted S. Warren
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NEW YORK – Starbucks says CEO Howard Schultz, who transformed the chain into a global coffee brand, is stepping down from that role at the coffee chain that he joined more than 30 years ago.

The Seattle-based company announced Thursday that Kevin Johnson, who was named president and chief operating officer last year, will become chief executive as of April 3.

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Schultz, currently chairman and CEO, will become executive chairman on that date to focus on innovation and social impact activities, among other things. Schultz, 63, is credited with turning around the coffee chain’s fortunes since returning as its CEO in 2008. He has overseen the expansion of the company’s popular loyalty program and mobile app and worked to expand food and beverage offerings.

The company’s sales have grown impressively in the U.S., although they’ve slowed more recently.

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During an interview with CNN in September, Schultz publicly endorsed Democratic presidential nominee Hillary Clinton, and did not rule out running for office at some point.

Shares of Starbucks slid 3.6 per cent to $56.44 in after-hours trading.

Johnson, 56, will take charge of the company’s global business and operations. He joined the Starbucks board in 2009 and has spent years at technology companies including 16 years with Microsoft and five as Juniper Networks CEO.

© 2016 Thompson Reuters

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