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The
suspension, effective immediately, will allow Starbucks to
invest more in the company's people and its stores, Schultz said
in a letter to Starbucks stakeholders.
The move comes as the company faces realities including pinched
supply chains, effects from the coronavirus pandemic and
heightened tensions and political unrest, Schultz added.
Starbucks is facing a growing unionization of its U.S.
workforce. Employees at 10 U.S. Starbucks locations have voted
in recent months to join Workers United, an affiliate of the
Service Employees International Union.
Baristas at more than 170 U.S. locations have petitioned a
federal labor board for union elections since August, when the
union drive went public.
Starbucks announced last month that Schultz would take over as
interim CEO, following the retirement of Kevin Johnson. Shares
of the coffee chain shot up about 5% on March 16, the day of the
announcement.
Schultz is practically synonymous with the company he took over
in 1987. During his previous four decades as chief executive and
chairman, the company grew from 11 stores to more than 28,000 in
77 markets worldwide, according to a news release.
Along with suspending the share repurchasing program, Schultz
will travel in the weeks ahead to connect with employees in
stores and manufacturing plants, as well as engage in design
sessions with employees, he said in the letter.
"I am returning to the company to work with all of you to design
that next Starbucks — an evolution of our company deep with
purpose, where we each have agency and where we work together to
create a positive impact in the world," he added.
(Reporting by Hilary Russ, writing by Stephanie Kelly; Editing
by Sam Holmes)
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