Starbucks is planning to cut 1,100 corporate jobs worldwide as new CEO Brian Niccol works to make the company more efficient. In a letter to staff, Niccol announced that employees affected by the layoffs would be notified by midday Tuesday. The company is also reducing several hundred open positions that are not filled.
Niccol’s goal is clear: enhance efficiency, improve accountability, and simplify operations. He noted that Starbucks has about 16,000 corporate employees, but not all will be affected. For instance, baristas and staff who work in roasting and warehouses are safe from these layoffs.
In January, Niccol indicated that changes would be made by early March to address the company’s structure, aiming to speed up decision-making and improve internal communication. He emphasized that the current setup could slow progress due to too many management layers and roles that primarily coordinate work.
Niccol joined Starbucks last fall to revitalize its declining sales. His focus includes improving service times, particularly during busy morning hours, and making stores feel more like community hubs. Adjustments to keep up with customer demands include menu cuts and testing new systems to better manage orders from various channels like mobile and drive-thru.
Starbucks recently reported a 2% drop in same-store sales for the fiscal year ending September 29. Rising prices and longer wait times have frustrated U.S. customers. In China, increasing competition has also posed challenges. However, the company did outperform sales estimates in the last quarter, leading to a slight increase in stock prices. Positive changes, such as no longer charging extra for non-dairy milk and simplifying the menu, have encouraged more customers to visit stores.
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