Starbucks announced plans to eliminate 1,100 corporate positions as part of a restructuring effort led by CEO Brian Niccol. The layoffs, which will involve notifying affected employees by Tuesday, also include the cancellation of several hundred unfilled roles. Niccol's goals include streamlining operations, improving accountability, and reducing managerial layers that complicate decision-making. The layoffs will not impact baristas or certain non-corporate roles. In line with its restructuring, Starbucks is also revising its menu and operational strategies to enhance service times and adapt to changing customer ordering preferences.
Starbucks plans to lay off 1,100 corporate employees globally as its new chairman and chief executive streamlines operations. In a letter to employees released Monday, CEO Brian Niccol said the company will inform employees who are being laid off by mid-day Tuesday.
"Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration," Niccol wrote in the letter.
Niccol is also cutting items from Starbucks' menu and experimenting with its ordering algorithms to better handle its mix of mobile, drive-thru and in-store orders.
Niccol said in January that corporate layoffs would be announced by early March. He said all work must be overseen by someone who can make decisions while the Seattle coffee giant reduces the complexity of its structure and eliminates silos within the company that slow communication.
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