Starbucks CEO Brian Niccol announced plans to lay off 1,100 corporate employees and eliminate numerous unfilled positions as part of a strategy to create smaller teams and operate more efficiently. The layoffs come amid declining in-store sales and an effort to reduce operational complexity. Niccol emphasized that these changes are necessary for Starbucks' future success, intending to improve accountability and integration. The chain is also planning to revise its menu, offering fewer items and focusing on customer favorites.
In a memo, Niccol said the cuts will remove duplication "to create smaller, more nimble teams," and the company will inform employees who are being laid off by midday Tuesday.
"We believe it's a necessary change to position Starbucks for future success," Niccol said in the statement. "Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration."
Last week, Niccol told the Wall Street Journal he plans to speed up wait times and improve mobile ordering.
The cuts come just one month after the Seattle-based coffee chain reversed its popular open-door policy, which allowed anyone to sit in its cafés or use the bathroom without making a purchase.
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