Starbucks is set to lay off 1,100 corporate employees globally as part of a major operational overhaul led by CEO Brian Niccol. In a letter released Monday, Niccol informed employees that affected workers would be notified by mid-day Tuesday, while several hundred unfilled positions would also be eliminated.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote.
Starbucks employs 16,000 corporate support staff worldwide, but the layoffs do not include baristas, roasting staff, or warehouse employees. A company spokesperson declined to confirm whether Canadian employees would be impacted.
The restructuring comes as Starbucks also moves to streamline its menu by cutting 30% of offerings and reversing its open-door policy, requiring customers to make a purchase to stay. Niccol had previously announced plans for corporate layoffs by early March, emphasizing the need for a more agile decision-making structure.
“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol stated.
Despite a 2% drop in global same-store sales in its 2024 fiscal year, Starbucks exceeded expectations in its most recent quarter. Changes such as eliminating extra charges for non-dairy milk and refining the menu have improved store traffic and service efficiency. Starbucks shares rose slightly by less than 2% on Monday.
Source: Swifteradio.com
