Starbucks will cut 1,100 corporate jobs worldwide as part of its new CEO’s turnaround strategy.
Brian Niccol, who joined from Chipotle last year to revive declining sales, stated that the job cuts aim to 'simplify' the business and focus on “priority work” to enhance the customer experience.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” he said.
“All with the goal of being more focused and able to drive greater impact on our priorities.”
Several hundred open and unfilled job positions across Starbucks will also be eliminated.
Starbucks employs around 16,000 corporate staff globally, with 10,000 based in the US, according to reports. These recent corporate job cuts are the first since 2018, when approximately 350 employees were laid off.
In-store staff, including baristas, will not be affected by these plans.
Senior staff in North America have been instructed to work from the company’s offices in Seattle and Toronto at least three days a week.
These changes are part of Niccol's 'Back to Starbucks' plan, where he has committed to simplifying menus and improving store service times, acknowledging that the company had 'drifted from [its] core.'
Other initiatives include Starbucks' decision to stop charging customers extra for non-dairy milk in the US and Canada last year.
Starbucks is the world’s largest branded coffee chain, with over 39,000 stores. In the UK, it operates around 1,250 locations, making it the second-largest chain after Costa.
In October, the group acquired its largest UK franchise, 23.5 Degrees, as part of its efforts to enhance the customer experience.
