Starbucks has announced 1,100 job cuts globally as it aims to increase efficiency and simplify its organisational structure.
The decision, revealed in a letter to employees, will affect the Seattle-based coffee giant’s corporate support staff and around 7% of its worldwide workforce.
Sharing the “difficult” news, new chairman and CEO Brian Niccol wrote: “We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.”
He explained that several hundred additional open and unfilled positions would also be eliminated following the company’s announcement in January that it would be reviewing the role, structure and size of its global support teams.
Global job cuts
Niccol added: “It is not a decision the leadership team took lightly. We understand the real effect this has on partners’ lives and their families.
“We believe it’s a necessary change to position Starbucks for future success – and to ensure we deliver for our green apron partners and the customers they serve.”
From March, the company is also planning to revamp and simplify its menu, removing some less popular drinks to “make way for innovation” and help reduce wait times.
The job cuts follow a difficult financial year for Starbucks, with global same-store sales dropping by 2% in the year ending in September 2024 and disgruntled customers in the US frustrated by price rises and longer waiting times.
Late last year, Niccol joined the business from Mexican food chain Chipotle, with the aim of turning it around.
In the letter to staff, he said employees affected will be notified by midday today (25 February), when they will also be informed of the compensation, healthcare benefits and career transition services that will be provided to those leaving.
The move will not impact roles such as warehouse operations, roasting and in-store baristas.
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