Starbucks to lay off over 1,000 corporate workers

Starbucks CEO Brian Niccol announced Monday that the company is laying off over 1,000 corporate employees as it works to simplify operations. 

Specifically, it is eliminating 1,100 current support partner roles and closing several hundred additional open and unfilled positions.

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol said in a letter to employees. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.” 

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Niccol informed employees about the layoffs in January, stating that they were part of the “Back to Starbucks” strategy – a series of changes aimed at enhancing the in-store customer experience while improving efficiency. 

Niccol, who became CEO in September with plans to return the company to its coffeehouse roots, is working to boost profitability and improve the work environment after the company faced years of growing pressure from unionization campaigns nationwide and consecutive disappointing fiscal quarters as traffic declined.

Niccol said in the note Monday that the layoffs were “a necessary change to position Starbucks for future success.” 

Niccol said the new structure is focusing on priority work and that the company will continue to simplify operations “to make it easier to drive the business forward.”  

The company said it will inform all employees who have been affected by Tuesday. Employees will be informed of any other changes to employee roles, including responsibilities and reporting structures, by the end of the week. 

Niccol said the company will still hire for positions that fit its new structure and add capacity when needed.

When Niccol took the reins late last year, he announced a number of initiatives to reverse the slump in sales and declining foot traffic, including reducing wait times at cafés to four minutes. He also announced the company would revert cafés back to their former “coffeehouse” aesthetic with “personal touches” like mugs and Sharpies, and bring back the condiment bar.

Part of his immediate strategy included simplifying the coffee chain’s “overly complex menu” to better align with its identity as a coffeehouse company, separating mobile order pickup from the café experience, and fixing its pricing architecture.

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Starbucks said in a separate announcement on Monday that it was removing a “selection of less popular beverages” from its menu to reduce wait times and improve quality and consistency. 

The drinks being removed include several Frappuccino blended beverages, the Royal English Breakfast Latte and the White Hot Chocolate. Starbucks said the beverages aren’t commonly purchased, can be complex to make or are similar to other drinks on its menu. 

Niccol also told FOX Business in an exclusive interview in December that he aims to make pricing on its app more transparent.