Starbucks to cut 1,100 jobs

Starbucks said on Monday it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his efforts to streamline the coffee chain and turn around its business.

The layoff would include current support partner roles and several hundred additional open and unfilled positions, Niccol said in a letter to employees.

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol said. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”

The coffee chain has been battling weak demand for its higher-priced beverages in the U.S. and China. Investors have been betting on Niccol, who took the helm last year, to simplify the operating structure and revive the coffee-house culture at its U.S. stores.

Niccol, who is credited with reviving burrito chain Chipotle Mexican Grill, had in January said Starbucks would cut jobs and said more details would be announced by early March.
In his new role at Starbucks, Niccol has laid out a plan called “Back to Starbucks” in attempt to revive the business.

“We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need,” Niccol said in the letter.

The layoffs would not affect in-store teams or the investments Starbucks is making in store hours, he said.

About The Brand

Starbucks is a global coffee giant that has revolutionized the way people experience coffee. Founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker in Seattle, Washington, Starbucks began as a single store selling high-quality coffee beans. However, it was Howard Schultz, who joined the company in the 1980s, who transformed Starbucks into the global phenomenon it is today.

Under Schultz’s leadership, Starbucks expanded rapidly, introducing its signature espresso-based drinks, such as lattes and cappuccinos, and creating a unique customer experience that combines high-quality products with a welcoming and comfortable store environment. Today, Starbucks is one of the world’s largest coffee chains, with over 30,000 stores in more than 75 countries, and a brand valued at over $100 billion.