Starbucks brings in new finance chief as part of turnaround strategy

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Starbucks named a new chief financial officer on Tuesday as part of a larger turnaround strategy.

Cathy Smith, who has been Nordstrom’s CFO since 2023, will join Starbucks in the next month, Starbucks Chairman and CEO Brian Niccol said in a letter to employees. Smith previously served as the chief financial officer of Target and Walmart International.

Smith will replace Rachel Ruggeri, who is leaving the company. Niccol said Smith brings extensive experience in retail, global operations and corporate turnarounds.

Ruggeri will stay at Starbucks for a period of time to assist with the transition, he said..

“Over her nearly 20 years at Starbucks, Rachel has held many important roles, always leading with integrity, a focus on results and a strong belief in the importance of our culture,” Niccol wrote.

He said Smith brings extensive experience in retail, global operations and corporate turnarounds.

Niccol is trying to reinvigorate Starbucks’ sluggish sales with faster service times, a less complicated menu and others moves he says are intended to restore a community coffeehouse feel to the company’s stores.

In January, the company reversed its open-door policy and said only customers who bought something would be allowed to hang out or use the restroom at a local Starbucks.

Niccol, who joined Starbucks last fall, also has been reshaping the company’s executive ranks in an effort to streamline decision-making and make leadership more accountable. In January, the president of Starbucks’ North America division stepped down after her job was split into two; Starbucks now has one executive in charge of existing stores and another in charge of store development.

Late last month, Niccol announced a plan to lay off 1,100 corporate employees globally.