Starbucks is laying off 1,100 corporate employees globally as part of its efforts to streamline operations and improve efficiency. The move comes under new Chairman and CEO Brian Niccol’s plan to reduce complexity and increase accountability.
In a letter to employees, Niccol said the company aims to operate more efficiently and drive better integration. He noted that Starbucks’ size and structure can sometimes slow it down due to too many layers and managers. As part of this effort, the company is eliminating several hundred open and unfilled positions.
The layoffs do not affect baristas working in stores, which make up most of the company’s 361,000 employees worldwide. This move follows similar actions by other big companies, including Southwest Airlines’ plan to eliminate 1,750 jobs last week.
Starbucks shares rose less than 2% on Monday after Niccol made changes visible to customers, such as stopping extra charges for non-dairy milk. The company reported global same-store sales fell 2% in its 2024 fiscal year due to price increases and growing wait times. However, recent quarterly sales topped expectations after Niccol’s changes.
Source: https://apnews.com/article/starbucks-layoffs-corporate-ac4110200335139836c6b370d864313c