Starbucks, under the leadership of new Chairman and CEO Brian Niccol, has announced plans to lay off 1,100 corporate employees globally as part of a strategic effort to streamline operations and enhance efficiency.
The big picture: The decision to reduce the workforce was disclosed in a letter by Niccol to the company’s employees, with notifications expected to be sent out by midday Tuesday. Additionally, several hundred open and unfilled positions are slated for elimination.
- The objective behind the layoffs, as outlined by Niccol, is to operate more efficiently, increase accountability, reduce complexity, and foster better integration within the organization.
- The layoffs primarily affect corporate support employees, totaling 16,000 worldwide, excluding roasting and warehouse staff. Notably, baristas in Starbucks stores, comprising the majority of the company’s 361,000 global employees, are not impacted by the layoffs.
Zoom out: The decision to downsize the corporate workforce at Starbucks comes amid a trend of large corporations making similar moves to align their operations with strategic objectives. For instance, Southwest Airlines recently announced a reduction of 1,750 jobs in its corporate workforce.
