Starbucks CEO Brian Niccol, who was hired last fall to address slower sales, has announced plans to fire 1,100 employees and streamline operations across the company. Photo by TR, Unsplash.

News Release

SEATTLE — Starbucks plans to fire 1,100 corporate employees worldwide as part of a restructuring effort led by its new Chairman and CEO, Brian Niccol. The company will also remove several hundred open positions, according to a letter to employees released Monday, Feb. 24.

The layoffs are part of a broader movement to increase operational efficiency, reduce complexity, and improve integration within the company.

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” wrote Niccol.

The 16,000 corporate support employees at Starbucks worldwide include some who will not be affected, such as those working in roasting and warehouse operations. Baristas at retail locations are not included in the layoffs.

In January, Niccol indicated corporate layoffs would be announced by early March, with the goal of creating a more streamlined organized structure. Niccol brought attention to the need for clearer decision-making authority and fewer management layers to speed up communications.

The CEO was hired last fall to address slow sales. He has said he wants to decrease service times, especially during peak morning hours, and restore stores as community gathering spots. He is also making changes to Starbucks’ menu and experimenting with ordering algorithms to better manage mobile, in-store and drive-through orders.

A 2% sales dip in Starbucks stores was reported for its last fiscal year ending Sunday, Sept. 29, with U.S. customers frustrated with price hikes and longer wait times. Growing competition faces Starbucks’ China locations with lower-priced rivals.

Starbucks’ shares stayed flat in Monday, Feb. 24’s premarket trading.