Starbucks plans to lay off 1,100 corporate employees worldwide as part of a restructuring under Brian Niccol, the new chairman and CEO. This decision aims to streamline operations and enhance efficiency throughout the company.
Employees were informed in a letter that the layoffs will be announced by midday on Tuesday, February 25, 2025. In addition to these layoffs, several hundred open and unfilled positions will also be eliminated. The company is focused on reducing complexity, increasing accountability, and improving integration within its operations.
In January, Starbucks already conducted another round of layoffs, targeting corporate-level positions. The primary goal was to streamline operations by removing redundant roles and addressing internal inefficiencies that were believed to hinder the company’s progress.
The layoffs will primarily affect corporate support employees but will not impact baristas in stores or staff involved in roasting and warehouse operations. Currently, Starbucks employs around 16,000 corporate support workers globally. Niccol has emphasized the need to simplify the company’s structure, which he believes has become too layered, slowing down decision-making and communication.
Hired last fall to address declining sales, Niccol is also working on improving service times, particularly during the busy morning rush. He plans to streamline the menu and adjust the company’s ordering algorithms to enhance management of mobile, drive-thru, and in-store orders. Starbucks has faced challenges, including a 2% drop in global same-store sales for its 2024 fiscal year, largely due to customer dissatisfaction with rising prices, long wait times in the US, and increasing competition in China.
