Starbucks is making major changes to its corporate structure, announcing plans to cut 1,100 corporate jobs in an effort to streamline operations and improve efficiency. CEO Brian Niccol outlined the decision in a company-wide letter on Monday, explaining that the move is intended to simplify workflows, speed up decision-making, and eliminate unnecessary complexity.
Employees affected by the layoffs will be informed by midday Tuesday, and the company is also scrapping several hundred vacant positions that were previously left unfilled. Niccol emphasized that the goal is to create a leaner, more accountable organization where teams can move faster and operate with greater clarity.
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The restructuring primarily impacts Starbucks’ corporate offices, where roughly 16,000 employees work in various support roles. However, store-level positions, including baristas, warehouse staff, and roasting facility workers, will not be affected. Niccol made it clear that the company needs to cut through layers of bureaucracy that have slowed operations and decision-making.
Since taking over last year, Niccol has been focused on revitalizing Starbucks, which has struggled with slowing sales and operational inefficiencies. He has pushed for changes aimed at reducing customer wait times, improving store atmospheres, and refining the company’s menu offerings. Starbucks has also been testing new order management systems to better balance mobile, drive-thru, and in-store traffic.
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The layoffs come after a difficult fiscal year for the coffee giant. Global same-store sales dropped 2% in the fiscal year ending September 29, with U.S. customers voicing frustration over higher prices and long lines. In China, where competition from low-cost rivals has intensified, Starbucks has been fighting to maintain its market share.
Niccol’s leadership has been marked by a push for efficiency and reinvention. By cutting corporate jobs and streamlining operations, he’s betting that Starbucks can regain its momentum and better position itself for long-term growth.
