Key Takeaways
- Starbucks CEO Biran Niccol said the company plans to cut 1,100 corporate employees and not fill several hundred open positions.
- Cafe workers will not be affected, Niccol said.
- The goal is to create "smaller, more nimble teams" as part of the company's "Back to Starbucks" business turnaround plan, the CEO added.
Starbucks (SBUX) plans to lay off 1,100 corporate employees, CEO Brian Niccol said Monday, while also leaving several hundred open positions unfilled.
In an open letter to employees, Niccol called the move “a necessary change to position Starbucks for future success” by creating "smaller, more nimble" support teams. Cafe workers would not be affected, nor would corporate employees in non-support roles such as roasting, manufacturing and distribution, a spokesperson told Investopedia. The company had about total 16,000 corporate 🔯employees as of Sep. 29, the spokeperson added.
The layoffs are part of a broader 澳洲幸运5官方开奖结果体彩网:“Back to Starbucks” business turnaround plan kickstarted by Niccol when he took the CEO position in September. The goal🅘 has been to stem declines in sales and traffic while positioning the chain to double its U.S. footprint. In January, the coffee giant said ne🏅t sales fell 0.3% year-over-year in its fiscal first quarter.
So far, Starbucks has been busy, announcing 澳洲幸运5官方开奖结果体彩网:sweeping changes to its cafes, including a pared-back menu, the return of baristas writing customers’ 澳洲幸运5官方开奖结果体彩网:names on cups, requiring customers to make a purchase to use the restr💦oom, new digital menu boards expected this year, and expanded free refills. Store aesthetics are also under review, as S🌠tarbucks tests new types of seating and brings back touches like ceramic mugs and accessible condiment bars.
Shares of Starbucks are up 25% since Brian Niccol joined the company, adding more than 1% intraday Monday.