Starbucks corporate layoffs expected in March: CEO


Global coffee shop Starbucks chain CEO Brian Niccol will cut corporate jobs as he continues to implement changes to boost lagging sales and improve profitability.

Nicole announced this through a notice to employees also posted on the Starbucks website.

He highlighted how the company aims to implement its “return to Starbucks” strategy, a series of changes announced last year aimed at improving customers' in-store experience, while also striving to achieve better efficiency. in layoffs.

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“We have recently begun work to define our support organization for the future. We are thoughtful about this, but it will involve difficult decisions and choices. Unfortunately, I expect we will have layoffs and smaller support groups moving forward.” Nicole wrote.

People walk past a Starbucks cafe

People walk past a Starbucks coffee shop on January 15, 2025 in Manhattan, New York, USA. (Mustafa Bassim/Anadolu via Getty Images/Getty Images)

“This work will not affect our in-store teams or our investment in store hours. We will communicate the changes by early March.”

He said he does not take such decisions lightly and wants to be transparent about his plans to ensure employees hear the plans directly from him. It is not clear how many people will be released.

Nicole, who took the position of general director In September, he emphasized that the company should return to its roots as a coffee shop.

The “Back to Starbucks” strategy aims to bring back some of the things that made the company the most recognizable coffee brand in the world.

This includes bringing spice sticks back into stores and enhancing the coffeehouse aesthetic with personal touches, such as serving coffee in ceramic mugs.

CEO Brian Niccol on June 10, 2015 in New York.

Starbucks CEO Brian Niccol, pictured in 2015 (Photo by Robin Marchant/Getty Images/Getty Images)

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Starbucks is also resuming and will stop using Sharpies to write customers' names on cups additional filling for customizing non-dairy dairy beverages.

The company also set a goal of a four-minute waiting time in cafes and provided additional coverage hours in more than 3,000 stores.

Earlier this month, the company said it would only welcome paying customers to have fun and use it toilets in stores. The move was made to favor paying customers who want to sit and enjoy themselves in their cafes.

Starting this spring, the company will double in size paid parental leave benefits for employees. The company previously offered six weeks of paid parental leave.

Among its latest goals to create a positive work culture, the company has committed to filling 90% of retail leadership roles internally to ensure employee retention and growth within the company. It also continues to cover 100% of college tuition for thousands of employees as part of the Starbucks College Achievement Plan and offering. company shares to eligible partners.

“We have more work to do, but I'm pleased with the progress we've made and appreciate how everyone is coming together around the plan,” Niccol wrote to staff.

Starbucks Coffee cup

A Starbucks Coffee cup is seen in this illustration photo taken on March 5, 2024 at a cafe in Manama, Bahrain. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

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Before Niccol took over, the company faced increasing pressure from union campaigns across the country and suffered back-to-back disappointing financial quarters with declining traffic. Nikkol, who replaced the former CEO Laxman Narasimhan in August strives to increase profitability and create a better environment for employees.

Niccol also faced workers striking hundreds of stores across the country.

Fox Business's Daniella Genovese contributed to this report.



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