Starbucks has 1,100 people as part of a broader effort by new CEO Brian Nicole to streamline operations and increase efficiency, including removing 13 drinks from the menu. has announced plans to cut corporate employment.
Layoffs do not affect store employees or employees in warehouses, manufacturing, distribution, or roasting operations. According to Bloomberg News.
The coffee giant has it The exact number of corporate employees has not been revealed On salary. The majority of that workforce is based in company operators around the world.
As of September, Starbucks employs 211,000 people in the United States, with 95% working in over 10,000 company-owned locations.
Internationally, the company had an additional 150,000 employees.
Nicole, who took on leadership amid declining sales in September, had previously presented a restructuring plan in January.
Employees affected by the layoff will receive notifications by Tuesday.
Corporate staff are instructed to work remotely throughout the week in preparation for the transition.
Nicole's plans to increase company-wide efficiency also include streamlining the menu by removing some low-performing drinks, such as Select Frappuccinos and The Royal English Breakfast Latte. The Seattle-based company plans to enact these changes starting March 4th.
Niccol is focusing on enhancing the in-store experience and optimizing its products, with plans to cut the menu by 30% by September.
Moving forward, Starbucks highlights premium drinks like Cortado, reintroducing popular seasonal items such as the lavender lineup.
The decision to eliminate corporate positions will align Starbucks with the same cost-cutting move as other major companies.
Southwest Airlines, for example, recently announced plans to cut corporate workforce by 15% with its first layoff.
Starbucks stock listed on the Nasdaq saw a slight increase of less than 1%.
Over the past 12 months, the stock has risen nearly 17% compared to an approximately 18% increase in the S&P 500.
Starbucks says affected employees will continue to receive salary and benefits through May 2nd, and will then be eligible for retirement based on their tenure.
The company also provides career transition support and other forms of assistance to those affected.
Additionally, hundreds of open and unopened positions will be closed as part of a restructuring effort.
“We recognize this news as difficult,” Nicole said in a announcement cited by Bloomberg News. “We believe this is a necessary change to position Starbucks for future success.”
In cooperation with the restructuring, Starbucks is reminding employees of workplace policies.
In accordance with existing policies, the Vice President and top executives will need to work three days a week from the company's Seattle or Toronto offices.
However, employees below the director level can maintain remote work status, while future employment can prioritize candidates based in Seattle or Toronto.
Since taking over as CEO, Niccol has been moving quickly and implementing operational changes designed to improve store efficiency.
These adjustments include reintroducing seasoning bars and restricting customers to access Starbucks locations only.
He also overturned leadership decisions made by his predecessors, strengthened the repatriation mission to the company's office, and warned employees that failure to comply with employee requirements could result in termination. , according to Bloomberg News.
However, Niccol's own travel arrangements have attracted criticism from some employees and external observers.
He emphasizes the importance of an office presence for employees, but he continues to commute from California to the company's Seattle headquarters.
Starbucks defends the arrangement, saying that Nicole will spend most of his time in Seattle or in visiting stores as part of his leadership duties.
