2024-08-15 21:30:19
New Delhi: America’s popular coffee chain Starbucks has fired its Indian-origin CEO Laxman Narasimhan. Narasimhan was made CEO last year with a huge package but he failed to handle the company’s deteriorating condition. During his 16-month tenure, the company’s market cap fell by 40 billion dollars. Even eight months of the year have not been completed and CEOs of 191 companies included in the Russell 3000 index in America have left their jobs. Out of these, 74 companies have fired their CEOs or forced them to leave the company. This is a new record of recent years. Last year, a total of 70 companies had shown the way out to their CEOs. This year, in just 7.5 months, 74 companies have fired their CEOs. Similarly, 62 companies fired their CEOs in 2022, 3 in 2021, 52 in 2020, 64 in 2019, 66 in 2018 and 26 in 2017. This year, 356 companies have filed for bankruptcy in the US. Last year, 591 companies filed for bankruptcy, which is the highest since 2011.
₹146 crore salary and a loss of $40 billion… Why did Starbucks give a blow to Laxman Narasimhan?
Another company will be shut down
Meanwhile, America’s leading retail furniture company LL Flooring has filed for bankruptcy. The company is preparing to close 94 stores across the country. During the pandemic, the demand for furniture in the country had increased significantly because people were working from home. But since then the demand has decreased. Also, inflation has troubled people. This is the reason why people are avoiding buying expensive furniture. All companies have been affected by this.