Starbucks corporate layoffs in March: CEO


Global coffee Starbucks chain will cut corporate jobs as CEO Brian Niccol continues to implement changes to shore up lagging sales and improve profitability.

Niccol made the announcement in a notice to employees that was also posted on Starbucks’ website.

He highlighted how the company aims to deliver on its “Back to Starbucks” strategy, a series of changes announced last year aimed at improving the in-store experience for customers, but also said that ‘must strive for better efficiency, which will ultimately result. in layoffs.

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“We have recently begun work to define the support organization for the future. We are approaching this work thoughtfully, but it will involve difficult decisions and choices. I expect that, unfortunately, we will have job cuts and smaller support teams moving forward.” , he added. ” Nicole wrote.

People pass by a Starbucks coffee shop

People walk past a Starbucks coffee shop in Manhattan, New York, United States on January 15, 2025. (Mostafa Bassim/Anadolu via Getty Images/Getty Images)

“This work will not affect our in-store teams or the investments we are making in store hours. We will communicate the changes in early March.”

He said he doesn’t make these decisions lightly and has wanted to be transparent about his plans to make sure employees hear the plans directly from him. It is not clear how many people will be let go.

Niccol, who took over as CEO in September, he highlighted the need for the company to return to its roots as a coffee shop.

The “Back to Starbucks” strategy aims to bring back some of the things that made the company the most recognized coffee brand in the world.

This includes bringing the condiment bars into stores and enhancing the cafe’s aesthetic with personal touches, such as serving coffee in ceramic mugs.

CEO Brian Niccol in New York City on June 10, 2015.

Brian Niccol, CEO of Starbucks, pictured in 2015 (Photo by Robin Marchant/Getty Images/Getty Images)

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Starbucks is also reintroducing the use of Sharpies to write customers’ names on cups and will stop charging extra to customize dairy-free milk drinks.

The company has also targeted a four-minute waiting time in coffee shops and provided additional coverage hours in more than 3,000 stores.

Earlier this month, the company said it would only welcome paying customers to hang out and use toilets in their stores. The move was made to prioritize paying customers who want to sit down and enjoy their coffees.

Starting this spring, the company will double in size benefits paid for parental leave for the workers. The company previously offered six weeks of paid time off for parental leave.

Among its latest goals to create a positive work culture, the company also committed to filling 90% of retail leadership roles internally, to ensure employees stay longer and grow with the company. It also continues to cover 100% of college tuition for thousands of employees as part of its Starbucks College Achievement Plan and offer company shares to eligible members.

“We have a lot more work to do, but I’m pleased with the progress we’ve made and I appreciate how everyone has come together around the plan,” Niccol wrote to workers.

Starbucks coffee cup

Starbucks coffee cup is seen in this illustration photo taken at the cafe in Manama, Bahrain on March 5, 2024 (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

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Before Niccol took over, the company was facing increasing pressure from union campaigns across the country and back-to-back disappointing fiscal quarters as traffic declined. Niccol, who replaced the former CEO Laxman Narasimhan in August, is trying to increase profitability and create a better environment for workers.

Niccol has also faced striking employees hundreds of stores across the country.

Daniella Genovese of Fox Business contributed to this report.



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