Starbucks announced plans to lay off 1,100 corporate employees globally as part of a strategy to streamline operations under new Chairman and CEO Brian Niccol. The layoffs, set to be communicated by mid-day Tuesday (February 25), are part of a broader effort to increase efficiency and reduce complexity within the company. Starbucks is also eliminating several hundred open and unfilled positions.
In a letter to employees, Niccol emphasized the need to operate more efficiently, increase accountability, and drive better integration. The layoffs will not affect baristas or roasting and warehouse staff. Starbucks employs 16,000 corporate support staff worldwide, but the restructuring aims to address issues with too many layers and roles focused primarily on coordinating work.
Niccol, who joined Starbucks last fall, was tasked with turning around sluggish sales. The company’s global same-store sales fell 2% in its 2024 fiscal year. In the U.S., customers have expressed dissatisfaction with price increases and longer wait times, while in China, Starbucks faces competition from cheaper rivals. To address these challenges, Niccol is cutting menu items and experimenting with ordering algorithms to better manage mobile, drive-thru, and in-store orders.
The layoffs at Starbucks are part of a larger trend, as many companies across various sectors have announced job cuts in early 2025. According to a report by Challenger, Gray & Christmas, nearly 49,800 jobs were cut by U.S. companies in January alone. The layoffs at Starbucks are expected to help the company refocus on improving service times, especially during the morning rush, and reestablishing stores as community gathering places.
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