Over 1,000 corporate employees at Starbucks will be laid off as the coffee giant works on “simplifying” its operations.
Brian Niccol, who became Starbucks CEO in September, is working on a “Back to Starbucks” strategy and told employees about the impending layoffs last month. On Monday, he announced the layoffs in a memo about “the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions.”
BREAKING NEWS: Seattle-based Starbucks to lay off 1,100 corporate employees globally.
Read the letter to employees from company CEO Brian Niccol – here: https://t.co/v75z7G9slj#LiveDesk pic.twitter.com/8g6BDcOzee
— Steve McCarron KOMO (@SteveTVNews) February 24, 2025
“We are 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. All with the goal of being more focused and able to drive greater impact on our priorities,” Niccol said.
“I recognize the news is difficult. It is not a decision the leadership team took lightly,” he continued, noting that ” it’s a necessary change to position Starbucks for future success.”
The company will be providing a comprehensive severance package, according to Niccol who noted that those being let go would be notified by “midday” Tuesday, Feb. 25.
“Our new structure is built to focus on priority work and is oriented to support the experience we create in our coffeehouses. We’ll simplify what we do and how we work to make it easier to drive the business forward,” the memo stated.
The new CEO’s changes come amid an effort to reverse declining sales and return the coffee house feeling to the world’s largest coffeehouse chain.
Monday’s memo also informed North American leadership teams that they “will need to be present with their teams in our Seattle (U.S.) and Toronto (Canada) offices at least three days a week.”
Those “working remotely in director and below roles today will keep their remote status,” the memo continued, adding that future hires on that level will need to be based in Seattle or Toronto.
Niccol told The Wall Street Journal that the company needs to revive the “coffeehouse vibe.”
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Originally from New York, Powers graduated from New York University and eventually made her way to sunny South Florida where she has been writing for the BizPacReview team since 2015.
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