Starbucks (Sbux) announced that it would eliminate about 7% of corporate jobs, because CEO Brian Niccol is focused on the company’s recovery plan.
In a letter obtained by Yahoo Finance sent to employees on Monday, Niccol shared that the company planned to eliminate 1,100 support roles and several hundred open and not filled positions worldwide.
The memo said employees will be informed of Tuesday, February 25. Niccol said that layoffs are intended to simplify the structure of the company while “deleting layers and duplication and creating smaller and more agile teams.
He added: “Our intention is to function more effectively, to increase responsibility, to reduce complexity and to stimulate better integration. All in order to be more concentrated and to be able to generate a greater impact on our priorities. “
At the end: February 21 at 4:00 p.m.
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Licensed employees will receive a “complete dismissal package,” said Niccol. According to sources close to the issue, this includes current remuneration and benefits until at least May May 2. Coaching in a head-on-one.
Last September, Starbucks employee About 361,000 workers worldwide and 211,000 in the United States. The majority of employees are store employees who will not be affected by this layoff. Employees working in roasting, manufacturing, storage and distribution operations will not be affected either.
Rather, the layoff will affect those of the 16,000 support roles for Starbucks companies.
In the letter, Niccol also asked North American leaders at the level of the vice-president and higher to report in person to the Seattle offices for American employees and in Toronto for Canadian employees “at least three days a week”.
He added that Starbucks will not change his hybrid working policies for existing employees, but policy will change for future employees.
“Generally, partners working remotely in the director and the lower roles today will keep their status away,” wrote Niccol. “Hiring for future roles will require that partners are based on Seattle or Toronto, with the exception of remote positions designated by the company.”
The restructuring announcement comes after the Seattle -based coffee giant has been in low earnings expectations for its first trimester Under the direction of Niccol. Niccol took the bar on September 9 and implemented a “Back to Starbucks” Plan, which requires a concentration on basic coffee products, the best prices and faster service.
“The first quarter in 2025 met our expectations, clearly show[ed] Some signs of progress … We still have a lot of work to do, “Niccol told investors on the call for profits.
