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Starbucks Corp (NYSE: SBUX) announced on Monday it will suspend billions of dollars of stock buybacks, as the former CEO Howard Schultz returns to the company.
Shares of the company closed more than 3% lower on Monday.
Schultz, who is becoming the company’s CEO for the third time, makes it clear from the decision that his focus would be on the employees and customers.
The move comes as Starbucks faces major unionization push from its U.S. baristas as nine of its locations have voted to unionize. More than 170 U.S. locations have filed petitions for a union election since August.
Starbucks announced last month that Schultz would return to the company as the interim CEO after Kevin Johnson, who served as the CEO since 2017, stepped down from the position. Shares of the company rose about 5% on the announcement.
Reuters reported that according to a letter to workers, Schultz said he would meet with employees in the coming months.
"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 wrote.
The company spent nearly $12 billion in fiscal 2019 and 2020 combined to buy back its own shares.
Picture Credits: WSJ