Connect with us

Hi, what are you looking for?

Business

Starbucks to lay off 1,100 corporate workers as sales sag

Starbucks will lay off 1,100 corporate employees and will not fill several hundred other open positions, the coffee chain’s CEO Brian Niccol said Monday.

The cuts will not affect workers at the company’s cafes.

In a message to corporate employees, Niccol said Starbucks is “simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.”

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote. “All with the goal of being more focused and able to drive greater impact on our priorities.” 

The layoffs come as Starbucks tries to draw coffee drinkers back to its cafes after same-store sales declined for four straight quarters. As customers turn to cheaper rivals in Starbucks’ two largest markets, the U.S. and China, Niccol has tried to revamp operations since he took the helm of the company last year, including by speeding up service.

Starbucks had about 16,000 employees who work outside of store locations as of last year. The cuts will affect people who work in corporate support, but not roasting, manufacturing, warehousing and distribution.

This post appeared first on NBC NEWS

You May Also Like

Business

Oil executives are warning that President Donald Trump’s tariffs and “drill, baby, drill” message have created uncertainty in energy markets that is already affecting investment....

Business

Earlier this year, Steve Cohen laid out his principles as the owner of the New York Mets, saying it was a “philanthropic” endeavor, in...

Stock

After the November pullback, GLD began to rally again. This week, on Wednesday, price exceeded the nearest November top, which made official the new...

Business

Salt Lake City has grown from a winter sports venue to a vibrant technology hub in just two decades, leveraging the legacy of the...