Starbucks Announces Corporate Layoffs

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Starbucks said it intends to cut approximately 1,100 corporate jobs.

The coffeehouse chain said the cuts would not impact staff at cafe locations.

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities,” Starbucks CEO Brian Niccol wrote in a message to global support partners.

“I recognize the news is difficult. It is not a decision the leadership team took lightly. We understand the real effect this has on partners’ lives and their families. We believe it’s a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve,” he added.

From the New York Post:

The layoffs do not affect store employees or those in warehousing, manufacturing, distribution and roasting operations, according to Bloomberg News.

The coffee giant has not disclosed the exact number of corporate employees on its payroll. The majority of its workforce is based in company-operated stores worldwide.

As of September, Starbucks employed 211,000 people in the United States, with 95% working in more than 10,000 company-owned locations.

Internationally, the company had an additional 150,000 employees.

Niccol, who assumed leadership in September amid declining sales, had previously signaled restructuring plans in January.

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Per CNBC:

The layoffs come as Starbucks tries to draw coffee drinkers back to its cafes after same-store sales declined for four straight quarters. As customers turn to cheaper rivals in Starbucks’ two largest markets, the U.S. and China, Niccol has tried to revamp operations since he took the helm of the company last year, including by speeding up service.

Starbucks had about 16,000 employees who work outside of store locations as of last year. The cuts will affect people who work in corporate support, but not roasting, manufacturing, warehousing and distribution.



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