Starbucks has announced plans to lay off 1,100 corporate employees and will also leave several hundred open positions unfilled. This move is part of new CEO Brian Niccol’s strategy to streamline operations.
In a message on Monday, Niccol explained that the job cuts aim to reduce corporate layers and eliminate redundancies, helping the company sharpen its focus.
“We believe it’s a necessary change to position Starbucks for future success,” Niccol said.
The company has been facing consecutive quarterly sales declines, as customers opt for more affordable coffee options or avoid long wait times. Niccol has committed to restoring the brand’s signature cafe atmosphere, enhancing service speed, and improving the mobile ordering experience.
As of last September, Starbucks employed 16,000 corporate workers across areas such as corporate support, store development, roasting, manufacturing, warehousing, and distribution. The company clarified that the layoffs would not impact employees in roasting, manufacturing, warehousing, or distribution roles.
Cafe employees will also not be affected by these cuts, Starbucks confirmed.
This layoff round is one of the largest in Starbucks’ history. In 2018, the company announced plans to cut 5% of its global corporate workforce, which equated to approximately 350 jobs.