"Starbucks is undergoing surgery. It's one CEO Brian Niccol has performed before. On Thursday, the company announced its second round of corporate layoffs this year and a swath of store closures across North America in service of Niccol's " Back to Starbucks" initiative. The move takes a page from his previous turnaround playbook, which he enacted as CEO of Chipotle from 2018 to 2024."
"Chipotle's turnaround was widely seen as a success. Under Niccol's tenure, sales skyrocketed, and the company's share price soared more than eightfold, trading at around $6 a share when he became CEO to around $56 each by the time he left for Starbucks. Now he's leading the coffee giant's turnaround, where investors showed early enthusiasm for Niccol to implement a similar strategy. But executing the same game plan is a bigger undertaking, given the company's global footprint and business challenges."
Starbucks announced a second round of corporate layoffs and numerous store closures across North America as part of the Back to Starbucks initiative. CEO Brian Niccol is applying restructuring measures similar to those he used at Chipotle, including staff reductions, site closures, and operational streamlining. At Chipotle, sales climbed and the share price rose more than eightfold under his tenure. Niccol is addressing long customer waits, a glitchy app, and staffing shortfalls at Starbucks. The company's global footprint and complex business challenges make replication of the Chipotle playbook a larger undertaking, and early results have been mixed. Since September 2024, Niccol has announced additional staffing reductions.
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