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Howard Schultz shares the surprising advice from Steve Jobs that transformed Starbucks’ leadership.
Starbucks founder and three-time CEO Howard Schultz recently shared an unforgettable experience with Apple co-founder Steve Jobs during an episode of the podcast 'Acquired.' Schultz recalled the moment when Jobs forcefully advised him to fire his entire leadership team, a suggestion that proved to be spot-on just a few months later.
For those who might not know, Howard Schultz is the visionary behind Starbucks. He served as chairman and CEO of the coffee giant from 1986 to 2000, again from 2008 to 2017, and as interim CEO from 2022 to 2023. In March 2023, Schultz handed over the reins to his permanent successor, Laxman Narasimhan, a former PepsiCo executive, and pledged not to return to the role.
The pivotal advice from Jobs came in 2008 during a meeting between Starbucks and Apple to discuss mobile ordering and other initiatives. Jobs invited Schultz to the Apple Campus, and as they walked around the courtyard, Schultz opened up about the challenges he was facing.
“Jobs had a whole thing about walking,” Schultz shared on the podcast. “He would go out and walk around the building. So I went down there, and we took a walk. I told him all my problems -- everything that was going on. He just stopped me and said, ‘This is what you need to do.’ He looked at me and said, ‘You go back to Seattle and you fire everyone on your leadership team.’ I thought he was joking.”
Schultz initially resisted the idea, questioning how the work would get done without his team. Jobs was adamant, almost shouting, “Fire all those people, that’s what I would do.” He even predicted, “I promise you, in six months, maybe nine, they’ll all be gone.”
When Schultz and Jobs met again at an event, Schultz acknowledged Jobs’ foresight. “We were on stage together, and I told him, ‘They’re all gone.’ He said, ‘Well, you’re six months, nine months late. Think about all the things you could’ve done.’
This advice from Jobs marked a significant turning point for Schultz and Starbucks, highlighting the sometimes harsh but transformative impact of decisive leadership.
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