Starbucks is laying off 1,100 corporate employees, about 7% of its workforce outside stores, as part of a restructuring effort to improve efficiency amid declining sales. CEO Brian Niccol stated the cuts aim to simplify operations and enhance the customer experience after a 4% drop in same-store sales during the first quarter of fiscal 2025. Alongside the layoffs, Starbucks will eliminate several open positions and focus on rethinking the in-store experience, including changes to mobile ordering and a commitment not to raise prices for the year.
In addressing worker concerns, Niccol stated that the layoffs aim to allow Starbucks to operate more efficiently and reduce complexity in organizational structures.
The company plans to revamp its in-store experience and streamline operations, reaffirming its commitment to a personalized customer experience reminiscent of its original coffeehouse atmosphere.
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