Starbucks has made a surprising announcement that they will be carrying out a round of layoffs, affecting 1,100 corporate employees, and leaving several hundred open positions unfilled, according to CEO Brian Niccol. However, it’s important to note that this move will not impact workers at the company’s cafes. In a communication to corporate staff, Niccol explained that Starbucks is undergoing a simplification of its structure by eliminating layers and redundancy, as well as establishing smaller, more agile teams. The primary objective behind this restructuring is to enhance operational efficiency, boost accountability, reduce complexity, and facilitate better integration, all in a bid to sharpen focus and achieve more significant impact on key priorities.
These workforce reductions come at a pivotal time for Starbucks, as the company grapples with a decline in same-store sales over four consecutive quarters, prompting efforts to lure back coffee enthusiasts to its cafes. In response to customers gravitating towards more cost-effective competitors in the U.S. and China, Niccol has been actively working to overhaul operations since assuming leadership last year, with a particular emphasis on accelerating service.
As of the previous year, Starbucks had approximately 16,000 employees working outside of its retail locations. The layoffs will primarily affect individuals in corporate support roles, sparing those involved in roasting, manufacturing, warehousing, and distribution. In addition to this internal restructuring, top technology firms are increasingly turning to hydrogen and nuclear energy to power their AI data centers, while a 37-year-old woman, who had only $10,000 in cash savings following her divorce, is now close to earning nearly $1 million. Furthermore, the CEO of IMAX anticipates box office receipts to reach $1.2 billion by 2025.
