Starbucks Braces for Corporate Layoffs

Starbucks is initiating one of the largest rounds of layoffs in its history as it seeks to revamp operations under new CEO Brian Niccol.

The coffee chain stated that the cuts would not affect workers in its cafés or those in roasting, manufacturing, warehousing, and distribution. I Photo: Dick Thomas Johnson Flickr

The company is cutting 1,100 corporate jobs and leaving hundreds of positions unfilled in an effort to improve sales after high prices, boycotts, and long wait times drove customers away, Evie Liu and Janet H. Cho reported for Barron’s Daily.

The layoffs come after Starbucks spent the past month evaluating the role, structure, and size of its global support teams.

The coffee chain stated that the cuts would not affect workers in its cafés or those in roasting, manufacturing, warehousing, and distribution.

“We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams,” Niccol wrote. “Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration.”

Starbucks is also bringing back condiment bars, handwritten notes on cups, and ceramic mugs while adding more comfortable seating and trimming about 30% of its menu offerings.

Additionally, the company reversed its policy and will once again restrict store bathrooms to paying customers.

Niccol stated in a letter posted on Starbucks’ website that managers at a certain level and above in North America will be required to work in their Seattle or Toronto offices at least three days a week.

Hiring for corporate positions will require relocation to Seattle or Toronto, with certain exceptions.

Starbucks, which had 16,000 corporate employees as of September, said it would notify workers about broader structural changes by the end of the week. Laid-off employees will receive pay and benefits until at least May 2.