Starbucks to Cut 1,100 Corporate Jobs Amid Restructuring

Starbucks plans to cut 1,100 corporate positions globally as CEO Brian Niccol moves to streamline operations. In a letter to employees on Monday, Niccol stated that those affected would be informed by noon on Tuesday. The company will also cut several hundred unfilled positions to improve efficiency, increase accountability, and reduce complexity, declared Niccol. 

The coffee chain, which employs 16,000 people in corporate roles worldwide, clarified that the layoffs will not impact employees involved in coffee roasting, warehouse operations, or product distribution. The affected positions include non-customer-facing roles that support business operations. Niccol emphasized that all work should be overseen by decision-makers as the company reduces structural complexity and eliminates silos that slow communication.

According to The Wall Street Journal, Starbucks faces declining sales amid increased competition in a market that it previously dominated. The company has also experienced customer complaints regarding long waiting times, which have affected the overall service experience.

Niccol, who was appointed last fall to address slowing sales, has outlined plans to enhance service speed, particularly during peak morning hours, and establish stores as community gathering places. As part of this strategy, Starbucks is removing some menu items and experimenting with order algorithms to optimize the balance between mobile, drive-thru, and in-store orders.