Howard Schultz, former Starbucks CEO, says Steve Jobs 'screamed in his face' telling him to fire his entire leadership

The Unconventional Leadership Advice That Changed Starbucks: A Tale of Schultz and Jobs

A Walk Around Cupertino

In 2008, amidst the turmoil of an economic crisis, Howard Schultz found himself at a crossroads. Starbucks, the global coffee titan he had nurtured, was floundering. Enter Steve Jobs, the iconic Apple founder known for his ruthless candor. Schultz recalled a moment during an Acquired podcast when Jobs, in typical fiery fashion, yelled at him: "You go back to Seattle and you fire everyone on your leadership team." Schultz, taken aback, thought it was a joke. Spoiler alert: it wasn’t.

The Shock of Brutal Honesty

Schultz’s reaction was one of disbelief. "Fire everybody? Seriously?" Jobs, never one to mince words, insisted: "F--king fire all those people." This wasn't your run-of-the-mill boardroom pep talk. Jobs was practically in Schultz's face, emphasizing the need for a radical overhaul. Schultz protested, worrying about who would handle the work. Jobs’s response? A blunt promise that within six to nine months, they'd all be gone anyway. In hindsight, Jobs was right. Almost all of them left, save for the general counsel.

The Aftermath and Reflection

Reflecting on this intense encounter, Schultz admitted Jobs's foresight was spot on. Months later, during a public event, Schultz recounted the firings to Jobs, who quipped, "You're six months late. Think about all the things you could’ve done." It was a humbling lesson in the cost of hesitance and the value of decisive action, even when it seems draconian.

The Missed Opportunities

Despite Starbucks' phenomenal growth, Schultz carries a few regrets. A notable one? Not trademarking "caffe latte" in America. Starbucks had popularized the drink stateside in the '70s but failed to protect the term legally. "We trademarked Frappuccino later on," Schultz said, "but I wasn't thinking about caffe latte." It's a poignant reminder that even industry giants can overlook significant details.

Reflecting on Leadership

Schultz’s story is a powerful testament to the importance of bold leadership and the willingness to make tough decisions. Jobs's unvarnished advice underscores a critical lesson for leaders: sometimes, you need to make painful choices to steer the ship back on course. Schultz's experience, marked by vulnerability and introspection, offers a candid glimpse into the often harsh realities of corporate leadership. It's a narrative that resonates deeply, inviting us all to reflect on our own moments of doubt and the courage it takes to act decisively.

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