The coffee company announced that Brian Niccol will assume the roles of chairman and CEO at Starbucks beginning September 9. In the interim, Rachel Ruggeri will step in as acting CEO. Starbucks also plans to have Mellody Hobson shift from her role as board chair to the lead independent director.

"I am excited to join Starbucks and grateful for the opportunity to help steward this incredible company, alongside hundreds of thousands of devoted partners," said Niccol. "I have long-admired Starbucks iconic brand, unique culture and commitment to enhancing human connections around the globe. As I embark upon this journey, I am energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values."

According to Reuters, the move comes following pressure from activist investor Elliott Investment Management after a period of underperformance, with Starbucks' stock losing 20% of its value over five years. 

In a recent post on LinkedIn, former Starbucks CEO Howard Schultz said Starbucks’ “fix needs to begin at home.” Schultz said that the company’s “fall from grace” was due primarily to issues with U.S. operations and culture. 

Ethical Consumer, a consumer advocacy organization, gave coffee giant Starbucks its "worst Ethical Consumer" rating for its supply chain management, echoing concerns expressed by vendors and employees for years. The company faces criticism over poor supply chain transparency, workers' rights violations, and controversial partnerships. 

Additionally, according to a Globe Banner report, Starbucks has been involved in several legal disputes, including a recent lawsuit over alleged misuse of trade secrets related to a product launch.