Starbucks to lay off 1,100 corporate workers globally

China

Starbucks to lay off 1,100 corporate workers globally

2025-02-25 16:58 Last Updated At：20:47

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.

Film IP fuels expansion of consumer market

China's movie industry is increasingly deriving its earnings from broader consumer economy.

Released during the 2025 summer season, the film "Nobody" became China's highest-grossing two-dimensional animated film -- and its success went beyond theaters.

Through licensing and brand partnerships, the movie has generated 2.5 billion yuan (about 358.3 million U.S. dollars) in retail sales to consumers, with more than 800 licensed products on the market.

Ranging from plush toys to food and home goods, the movie-related merchandise can be purchased from over 3,000 online and offline outlets.

Meanwhile, souvenir stores are crowded at Shanghai Disneyland's Zootopia themed land, with hats, plush toys, and collectibles seeing steady demand from visitors.

"China's film industry is no longer defined by box office revenue alone. It has become a new growth engine that links and energizes multiple cultural sectors. At the heart of every successful film is strong storytelling. High-quality productions create cultural value, which in turn enhances the commercial value of intellectual property and opens up new consumption opportunities. I believe China's film industry delivered an outstanding performance in the past year," said Chen Xiaoda, vice dean of Shanghai Vancouver Film School.