Additional Coverage:
Starbucks CEO Brian Niccol announced corporate layoffs affecting 1,100 employees on Monday. Niccol emphasized that these cuts will not impact cafe workers.
The move is part of a broader effort to streamline operations and boost the company’s performance after four consecutive quarters of declining same-store sales.
In a message to employees, Niccol explained the restructuring aims to simplify the company’s structure, eliminate redundancies, and create more agile teams. He stressed the goal is to improve efficiency, accountability, and integration.
Starbucks is facing challenges attracting customers back to its cafes, particularly as consumers seek more affordable options. This has led to declining sales in key markets like the US and China. Niccol, who took over leadership last year, has been working to revitalize the company, including initiatives to speed up service.
Approximately 16,000 non-store employees were on Starbucks’ payroll last year. The layoffs will target corporate support staff, but will not affect those in roasting, manufacturing, warehousing, or distribution.