Starbucks announced on Monday that the company is laying off 1,100 corporate employees and eliminate hundreds of open roles, as part of a broader effort to streamline its structure and improve operational efficiency.
Starbucks CEO Brian Niccol said in a letter to employees on Monday that the company is simplifying its structure by shedding redundant roles and "creating smaller, more nimble teams."
The intent of the layoffs is "to operate more efficiently, increase accountability, reduce complexity and drive better integration," Niccol said in the letter. "All with the goal of being more focused and able to drive greater impact on our priorities."
Affected employees will be notified by Tuesday. In-store baristas are not included in the job cuts.
Niccol first announced in January the company was planning layoffs as he worked on a turnaround for the business. He took the office in September 2024 after a tough year for the Seattle-based coffee giant.
Starbucks' sales at its cafes slipped by 4 percent compared to the year before, according to the company's 2024 fourth quarter financial report. Profit-per-share also dropped 23 percent in the quarter.
Partially due to the CEO transition at the end of Starbucks' fiscal year, the company suspended a financial forecast for 2025.
Starbucks to lay off 1,100 corporate workers globally
Starbucks to lay off 1,100 corporate workers globally
