Starbucks set to slash 1,100 jobs
Starbucks will slash 1,100 corporate roles as part of CEO Brian Niccol’s strategic turnaround
Starbucks announced it will cut 1,100 corporate positions as CEO Brian Niccol advances his restructuring plan amid declining sales.
In a letter to employees, Niccol stated, “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.”
'Challenging market'
Appointed last year when shares had dropped 40% from their 2021 peak amid weak US and Chinese demand, Niccol inherited a challenging market landscape.
Known for revitalising Chipotle Mexican Grill, Niccol launched the 'Back to Starbucks' initiative, targeting business streamlining through workforce reductions and enhanced customer experience at US stores. In the six months since his appointment, Starbucks shares have surged over 22%, with an additional nearly 2% increase observed in afternoon trading.
Niccol emphasised, “We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need.”
According to its 2024 report, Starbucks currently employs roughly 211,000 individuals in the US and an additional 150,000 globally.
In a separate move aligned with Niccol’s menu-simplification drive, Starbucks announced it will discontinue several less popular drinks — including some frappuccino blends and white hot chocolate.
You may also be interested in…
