A growing trend has emerged in major US companies: the dismissal of executives of Indian origin. Companies like Google, Microsoft, Starbucks, and even Twitter have been at the forefront of this shift. In recent years, a staggering 190 Indian-origin executives lost their jobs, including 74 CEOs. Even Elon Musk paid a massive $370 million to remove Indian leaders from Twitter. But why are Indian executives, who have long dominated leadership roles in top companies, now being let go?
The Rise of Indian-Origin Executives
Indian-origin executives rose to power in the US corporate world through a combination of unique factors, many of which were products of the British colonial era. One of the primary reasons for their success was their mastery of the English language and understanding of Western culture. These executives were often groomed to excel in environments where Western business practices and communication were key, due to their education in British-style institutions.
Moreover, Indian executives are often known for their charm and confidence when pitching ideas. These traits, honed over generations of navigating hierarchical systems, often made them compelling leaders, even if their actual results didn’t always match the grandiose promises. In many ways, bluffing became an integral part of their success—projecting confidence in ideas that didn’t necessarily pan out. But, as we’ve seen in recent years, this approach isn’t enough to sustain success at the highest levels.
The Fall of Indian-Origin Executives
Take, for instance, Laxman Narasimhan, the former CEO of Starbucks. Narasimhan’s tenure was marked by a series of missteps that led to a 4% drop in sales, tanked stock prices, and widespread internal chaos. After his departure, Starbucks saw stock prices rise by 20%, a clear indication that the leadership shift had a significant positive impact. Similarly, Dennis Muilenburg, former CEO of Boeing, faced massive fallout after outsourcing critical software development during his tenure, resulting in two fatal crashes involving the Boeing 737 Max. After those disasters, Boeing was forced to overhaul its leadership, firing many staff, including those of Indian origin who were involved in the decision-making process.
Another case is Vishal Sikka, the former CEO of Infosys, who faced his own set of challenges when he was ousted after a series of internal disputes and controversies. Although he initially drove the company’s transformation, the tensions surrounding his leadership—particularly his strained relationship with the company’s founder and his handling of various corporate governance issues—led to his resignation in 2017. His departure was followed by a rise in stock price and a renewed focus on company performance, underscoring that the company struggled under his leadership despite early successes.
Sandeep Mathrani, the former CEO of WeWork, also faced a tumultuous tenure. When Mathrani took over in 2020, WeWork was still reeling from the disastrous leadership under its co-founder, Adam Neumann. Mathrani, brought in to stabilize the company, struggled to implement meaningful change. Despite being seen as a seasoned leader with experience in commercial real estate, Mathrani’s leadership failed to reverse WeWork’s financial troubles. His attempts to improve the company’s performance were undermined by lingering debt and an unsustainable business model, leading to further financial losses. WeWork’s valuation plummeted, and the company continued to face mounting challenges, highlighting that even an experienced leader like Mathrani couldn’t save a company in deep financial trouble. Mathrani’s departure from WeWork left the company still grappling with its identity and future prospects.
Why Were Indian-Origin Executives Hired in the First Place?
Three primary reasons explain why Indian-origin executives found themselves at the helm of major US companies:
- Hard Work and Willingness to Work for Lower Wages
Indian-origin executives are known for their strong work ethic and willingness to put in long hours. Their commitment to delivering results and working diligently made them attractive hires. Additionally, Indian executives were often willing to work for lower wages compared to their Western counterparts, which made them appealing to cost-conscious companies. - Persuasion and Charm
Indian executives excel at pitching ideas, often with a persuasive style that can captivate their audience. This skill, however, was sometimes a double-edged sword. They could sell visions and ideas to superiors, even if the results didn’t materialize. This ability to win people over played a crucial role in helping them ascend to leadership positions. But as companies transitioned to a more results-driven focus, this charm and persuasive ability were no longer enough to sustain them. - Understanding Hierarchical Systems
The Indian approach to corporate culture is heavily influenced by hierarchical structures. Executives of Indian origin have a deep understanding of how to please superiors, manage expectations, and navigate corporate politics to climb the ranks. This ability to effectively maneuver within these systems often made them highly effective at positioning themselves for top leadership roles.
Changing Times: The End of an Era?
The global landscape has changed dramatically in recent years. The rise of China as an economic and technological superpower has sent a strong wake-up call to American companies. China’s rapid advancements in manufacturing, finance, and high-tech industries are not only challenging the US in terms of production but also in innovation and results. Companies across all sectors are now realizing that delivering tangible, measurable results is more important than ever. In this context, the charm and persuasive skills that once helped Indian-origin executives rise to the top are no longer sufficient.
The focus in today’s competitive environment has shifted sharply toward performance. China’s growing influence in the global market highlights the need for American businesses to prioritize results and efficiency over charisma alone. As the US faces heightened competition from China, companies are looking for leaders who can produce measurable outcomes, especially in high-tech, finance, and manufacturing sectors—industries where the old-school methods of Indian-origin executives may no longer be enough.
A Phase or the End of an Era?
Is this just a temporary phase, or is it the end of an era for Indian-origin executives in the US? The facts are hard to ignore. Despite the long-standing success of Indian-origin leaders, the corporate landscape is evolving rapidly, with a stronger emphasis on performance over presentation. The rise of China, the global economic downturn, and the need for companies to achieve tangible results are all contributing to this shift.
The growing trend of dismissing Indian-origin executives may signal the end of a chapter in corporate America. For job seekers and those already working in finance, it’s crucial to recognize that the demands of the corporate world are changing—and adaptability, along with a focus on delivering real, measurable results, may be the key to success in this new era.