Starbucks CEO Howard Schultz is getting what was coming to him after vowing to give 10,000 jobs to refugees over American workers. He made headlines where he wrote a very anti-Trump message to his employees.
“I write to you today with deep concern, a heavy heart and a resolute promise. Let me begin with the news that is immediately in front of us: we have all been witness to the confusion, surprise and opposition to the Executive Order that President Trump issued on Friday, effectively banning people from several predominantly Muslim countries from entering the United States, including refugees fleeing wars,” wrote Schultz.
“here are more than 65 million citizens of the world recognized as refugees by the United Nations, and we are developing plans to hire 10,000 of them over five years in the 75 countries around the world where Starbucks does business,” explained Schultz.
However, a short time later Schultz was forced to retire as CEO of Starbucks. He is being replaced in April by Starbuck’s Chief Operating Officer Kevin Johnson. Right after Schultz released his plan to hire 10,000 refugees, Starbuck’s image went down.
“Our work shows a sudden drop in brand sentiment following announcement of the refugee hiring initiative on Jan. 29th, to flattish from a run-rate of ~+80 (on an index of -100 to +100). Net sentiment has since recovered, but has seen significant volatility in recent weeks,” explained Starbuck’s equity analyst Jason West in an an interview with CNBC.