STARBUCKS TO CUT 1,100 CORPORATE ROLES – CEO Brian Niccol pushes ahead with his turnaround efforts due to falling sales
Starbucks has said it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his turnaround efforts at the coffee chain that has been struggling with falling sales.
Niccol told employees in a letter they are ‘simplifying our structure, removing layers and duplication and creating smaller, more nimble teams’ with an intent to operate more efficiently and increase accountability among other goals.
Niccol was named CEO last year at a time when the company’s shares had lost 40% of their value from the 2021 high due to weak demand in the U.S. and China and has since put in place “Back to Starbucks” plan that focused on streamlining business through job cuts and by improving customer experience at its U.S. stores.
Since taking the helm six months ago, Starbucks shares have rebounded more than 22%. They were marginally up in early trading.
Starbucks employs about 211,000 people in the U.S. and around 150,000 employees internationally, according to its 2024 report.
The company also said it was removing a few “less popular beverages” from the menu, including several frappuccino blended beverages and the white hot chocolate, in line with Niccol’s push to simplify its menu.
