Starbucks Cuts 1,100 Corporate Roles in New CEO’s Push to Streamline, Cut Costs

The Epoch Times Header

The company announced a 2 percent drop in same-store sales for fiscal year 2024, with price increases and wait times attributed as major factors.

Starbucks is eliminating 1,100 corporate jobs as part of a restructuring effort aimed at streamlining operations and increasing efficiency, CEO Brian Niccol announced on Feb. 24. The layoffs affect global support staff but will not impact in-store employees.

The decision is part of Starbucks’ “Back to Starbucks” plan, which aims to simplify its corporate structure by removing redundant roles and creating smaller, more agile teams. Niccol said the move is designed to “operate more efficiently, increase accountability, reduce complexity, and drive better integration.”

“This includes the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions,” Niccol wrote in a message to global employees.

Starbucks has 16,000 corporate support employees worldwide, but that includes some employees who aren’t affected, such as roasting and warehouse staff.

Despite the corporate layoffs, the coffee chain is maintaining its focus on store operations and frontline employees.

“This does not affect our in-store teams or the investments we are making in store hours,” the company said.

Niccol said in January that corporate layoffs would be announced by early March and that all work would be overseen by someone who can make decisions while the company reduced the complexity of its structure and eliminated silos within the company that slow communication.

Starbucks hired Niccol last fall to turn around sluggish sales. He has said he wants to improve service times and reestablish stores as community gathering places, in part by cutting items from the menu and experimenting with changes to ordering algorithms for mobile, drive-thru, and in-store customers.

The company announced a 2 percent drop in same-store sales for fiscal year 2024, with price increases and wait times attributed as major factors.

Employees affected by the layoffs will be informed by midday on Feb. 25, according to the announcement.

Vice presidents and higher-ranking leaders were expected to begin receiving notifications earlier. Other changes, including shifts in roles and reporting structures, will be communicated by the end of the week, according to the company.

By Chase Smith

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Beijing and Moscow Double Down on Propping Up Tehran, Threaten to Give It Nukes

As anyone who understands how these things unfold could...

The Looming Threat To Our Homeland

After success of “Operation Midnight Hammer,” where U.S. military bombed Iranian nuclear facilities, the threat to America has never been greater.

Trump’s Bold Strike on Iran: A Necessary Move for Global Security 

Trump’s airstrikes on Iran’s nuclear facilities have been hailed as a courageous and necessary action to safeguard American interests and global stability.

Groundhog Day came late this year to the Land of Smiles.

it’s the same rigmarole, on whatever pretext, the army commandeers the Thai state with vague promises to restore democracy at some unspecified future date.

Resource number one

Russia has an unsustainable birthrate worsened by mortality rate of Russian males through war and alcoholism. One solution, steal young children from other countries. 

Boeing, FAA Share Blame for Door Panel Flying Off During Alaska Airlines Flight: NTSB

The sudden midair door panel blowout on Alaska Airlines flight last year stemmed from failures by Boeing, its supplier Spirit AeroSystems, and the FAA.

RFK Jr. Says Pregnant Women Can Get COVID-19 Vaccine If They Choose To

Pregnant women can get COVID-19 vaccines, even after CDC stopped recommending shots during pregnancy, Sec. RFK, Jr. told members of Congress.

Texas Governor Signs Law Requiring Warning Labels on Some Foods

Texas is requiring companies to add warning labels to some foods, under the Texas MAHA legislation bill signed into law by Gov. Greg Abbott.

21.8 Million US Seniors Paying for Expenses With Only Social Security Income: Survey

An estimated 21.8 million senior citizens in America make ends meet solely using their social security funds, The Senior Citizens League (TSCL) said.

Trump Arrives in Netherlands for NATO Summit, With Defense Spending High on Agenda

President Donald Trump arrived in Amsterdam on Tuesday to attend the NATO summit, which is being held in The Hague from June 24 to 25.

Major Victory for Trump Administration and the American People on Deporting Criminal Illegal Aliens to Third Countries

Supreme Court decision allows DHS to deport criminal illegal aliens who are not wanted in their home country to third countries who've agreed to accept them.

No Changes Planned for FDA’s Vaccine Advisory Committee ‘At This Time’: Spokesperson

There are no plans to remove any members of the panel that advises the FDA on vaccines, a spokesperson said on June 20.

Trump Says Trade Deals Expected With India and Pakistan

President Trump expects US will sign trade deals with India and Pakistan, signaling growing momentum in push to reshape global trade through tariff diplomacy.
spot_img

Related Articles