Starbucks Layoffs: Coffee Giant To Cut 1,100 Jobs To Streamline Operations

Starbucks Layoffs: Starbucks employs 16,000 corporate support staff globally, though certain roles, such as roasting and warehouse workers, are not impacted by the layoffs

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in the letter.

Source : Starbucks

Starbucks Layoffs: Starbucks, the multinational coffee chain, is laying off 1,100 corporate employees as new Chairman and CEO Brian Niccol focuses on streamlining operations. In a letter to employees on Monday, Niccol stated that those being laid off would be notified by mid-Tuesday. The company is also streamlining various open and unfilled positions, according to AP reports.

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in the letter.

Starbucks employs 16,000 corporate support staff globally, though certain roles, such as roasting and warehouse workers, are not impacted by the layoffs. Additionally, baristas at Starbucks stores are not part of the reductions.

The job cuts, which account for nearly 7 per cent of the company’s global workforce outside of company-owned stores, will also include roles such as warehousing that are not impacted by the restructuring plans, as per a Bloomberg report.

Corporate employees affected by the layoffs will continue to receive pay and benefits until May 2, 2025. After that, they will be provided with a severance package based on their tenure, according to reports from Starbucks.

In January, Nicol announced that corporate layoffs would be revealed by March. He emphasized the need for all work to be managed by decision-makers as the company streamlines its structure and eliminates silos that hinder communication.

“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol wrote.

Nicol was brought on last year to revitalize sluggish sales. He aims to improve service times, particularly during the morning rush, and restore Starbucks stores as community hubs.

The new CEO is also streamlining the coffee giant’s menu and testing new ordering algorithms to better manage mobile, drive-thru, and in-store orders.

Back To Office Mandate

According to the report, Starbucks will require employees at the vice president level and above to work from the Seattle or Toronto offices three days a week. Corporate employees at the director level or below can continue working remotely. However, future hires will be required to work from one of these two offices, as stated in the report.