Additional Coverage:
- Starbucks’ layoffs weren’t about cutting costs, CEO tells remaining workers: ‘We’re not effective’ (fortune.com)
Starbucks CEO Brian Niccol recently addressed employees at the company’s Seattle headquarters, emphasizing the need for increased accountability and effectiveness among leadership. Niccol’s comments follow a series of significant changes at the struggling coffee giant, including layoffs of over 1,000 workers and menu simplifications.
According to reports of the internal forum, Niccol linked the recent restructuring to a lack of effectiveness in decision-making and operational execution. He stressed the importance of leaders taking ownership of these issues and improving accountability for both financial and operational choices. “We’re not effective on how things get to the store,” Niccol stated, highlighting the need for streamlined processes and clearer lines of responsibility.
While acknowledging that there are still challenges to overcome, Niccol expressed optimism about the company’s turnaround efforts. He pointed to seemingly minor details, such as ensuring functioning electrical outlets in cafes and addressing customer complaints about furniture and order backups, as critical areas for improvement. Niccol also suggested that increasing the number of employees working from the office in the U.S. and Canada could contribute to improved operations.
These latest remarks come as Starbucks grapples with declining same-store sales and reduced foot traffic. Despite previously noting progress in the company’s turnaround strategy, Niccol emphasized the shared responsibility for success, telling employees, “We own whether or not this place grows.” His push for greater accountability and focus on operational details underscores the ongoing challenges faced by the coffee chain as it strives to regain its footing.