Starbucks SBUX 1.29%increase; green up pointing triangle said it would lay off 1,100 corporate employees and not fill hundreds of open roles, part of new Chief Executive Brian Niccol’s effort to streamline operations.
Niccol said in a message Monday that the cuts would remove corporate layers and duplications and would help the coffee company become more focused.
“We believe it’s a necessary change to position Starbucks for future success,” Niccol said.
Starbucks has been struggling with a string of quarterly sales declines as customers have sought out cheaper coffee, or balked at long lines. Niccol has pledged to bring back the company’s old cafe vibe in stores, speed up service and improve the mobile ordering experience.
As of September, Starbucks had 16,000 corporate employees, including those supporting store operations, store development and roasting. The company said the layoffs wouldn’t affect roasting, manufacturing, warehousing and distribution workers.
Cafe workers also wouldn’t be affected by the cuts, Starbucks said.
The layoffs are among the largest rounds of cuts in Starbucks’s history. In 2018, Starbucks said it would lay off 5% of its global corporate workforce, amounting to around 350 people.
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