Starbucks has appointed Cathy Smith as its new chief financial officer, marking another significant step in the coffee chain's ongoing corporate restructuring under chief executive officer Brian Niccol.

Smith, 61, will join the company next month, replacing Rachel Ruggeri, who has been the finance chief since 2021 and has worked at Starbucks for nearly two decades. Her departure is described by the company as "without cause", and she will assist with the transition.

Niccol highlighted Smith's extensive retail experience, stating, "Cathy brings incredible knowledge and extensive experience in retail, global operations, and turnaround success." Smith joins Starbucks after a two-year stint as chief financial officer at Nordstrom, and has previously held finance leadership roles at prominent companies including Target, Walmart International, and GameStop.

The executive appointment is part of a broader strategic overhaul initiated by Niccol, who became chief executive in September. The leadership transformation aims to address Starbucks' recent sales challenges and improve operational efficiency. As part of these efforts, the company has already eliminated 1,100 corporate roles and restructured its management.

Smith's compensation package includes an initial base salary of $925,000, with a bonus target of 125 per cent of her base pay. She will also receive a $5 million signing bonus to compensate for financial incentives forfeited by leaving Nordstrom.

Prior to Niccol's appointment, Starbucks had experienced significant share value decline, losing approximately 40 per cent of its market value. However, since his arrival, the company's stock has rebounded, rising nearly 50 per cent.

The leadership changes extend beyond the finance department. Earlier this year, Starbucks also saw departures of its North America president and chief supply chain officer, with Niccol bringing in new talent, including Mike Grams from Taco Bell in a newly created North America chief stores officer role.

Smith's hiring represents another strategic move in Niccol's "Back to Starbucks" plan, which focuses on improving customer experience through menu simplification and reduced waiting times at its US stores.

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