Starbucks CEO Brian Nicol said the company needs to be more transparent about its app's pricing.
Global coffeehouse chain Starbucks plans to cut corporate jobs as CEO Brian Nicol continues reforms to boost sluggish sales and improve profitability. .
Nicol made the announcement through a notice to employees that was also posted on Starbucks' website.
He highlighted how the company aims to implement its “Back to Starbucks” strategy, a series of changes announced last year aimed at improving the in-store experience for customers. He also said that efforts must be made to improve efficiency, which will ultimately pay off. Being laid off.
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“We have recently begun the process of defining our future support organization. We are approaching this work carefully, but it will involve difficult decisions and choices. We anticipate that there will be cuts and reductions in our support team,” Nicol wrote.
People walk past a Starbucks coffee shop on January 15, 2025 in Manhattan, New York, USA. (Mostafa Basim/Anadolu via Getty Images/Getty Images)
“This work will not impact our in-store teams or our investments during store hours. We will communicate any changes to you by early March.”
He said he doesn't take such decisions lightly and wants to be transparent about his plans so employees can hear directly from him about them. It is unclear how many people will be laid off.
Nicol, who took over as CEO in September, has emphasized the need for the company to return to its roots as a coffeehouse.
The “Back to Starbucks” strategy aims to bring back some of the elements that made the company the most famous coffee brand in the world.
This includes enhancing the aesthetics of coffeehouses with personal touches, such as bringing back condiment bars to stores and serving coffee in ceramic mugs.
Starbucks CEO Brian Nicol, photographed in 2015 (Photo by Robin Merchant/Getty Images/Getty Images)
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Starbucks is also reintroducing the use of a Sharpie to write customers' names on cups and will stop charging extra fees for customizing drinks with non-dairy milk.
The company also set a goal of reducing cafe wait times to four minutes and provided additional coverage time at more than 3,000 stores.
The company announced earlier this month that it would only welcome paying customers to hang out in its stores and use the restrooms. The move was made to prioritize paying customers who want to sit and enjoy the cafe.
Starting this spring, the company will double paid parental leave benefits for employees. The company previously offered six weeks of paid leave for parental leave.
In its latest goal to build a positive work culture, the company is also bringing 90% of its retail leadership roles in-house to enable employees to stay longer and grow with the company. I'm working on it. Additionally, as part of the Starbucks College Achievement Plan, we continue to cover 100% of college tuition for thousands of employees and provide stock to eligible partners.
“While we still have a lot of work to do, we are pleased with the progress we have made and are grateful that everyone has rallied behind the plan,” Nicol said in a letter to workers. Ta.
A Starbucks coffee cup is seen in this illustrated photo taken at a cafe in Manama, Bahrain on March 5, 2024. (Jakub Porzycki/NurPhoto via Getty Images / Getty Images)
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Before Nicol took over, the company faced a series of disappointing financial results due to increasing pressure from unionization efforts across the United States and declining traffic. Nicol, who replaced former CEO Laxman Narasimhan in August, is working to improve profitability and create a better environment for workers.
Nicol is also facing employee strikes at hundreds of stores across the country.
Fox Business' Daniella Genovese contributed to this report.
