Starbucks is set to lay off 1,100 corporate employees worldwide as part of a restructuring under Brian Niccol, the new chairman and CEO. The move is part of an effort to streamline operations and improve efficiency across the company.
informed employees in a letter that the layoffs will be announced by mid-day Tuesday, 25 February, 2025. In addition to the layoffs, several hundred open and unfilled positions will also be eliminated. The company is focusing on reducing complexity, increasing accountability, and improving integration within its operations.
In January, the company witnessed another round of layoffs including job cuts at the corporate level. The primary aim was to streamline the operations by eliminating redundant roles as well as reducing internal inefficiencies that the company believed were hampering its progress.
The layoffs will affect corporate support employees but will not impact baristas in stores or staff in roasting and warehouse roles.
Starbucks currently employs around 16,000 corporate- support workers globally. Niccol emphasised the need to simplify the company’s structure, which he said had too many layers and slowed decision-making and communication.
Niccol, who was hired last fall to address declining sales, has also been working to improve service times, especially during the busy morning rush. He plans to streamline the menu and adjust the company’s ordering algorithms to better manage mobile, drive-thru, and in-store orders. Starbucks has faced challenges, including a two per cent drop in global same-store sales for its 2024 fiscal year, largely due to customer dissatisfaction with rising prices and wait times in the US and growing competition in China.
