Starbucks announced on Friday that it intends to lay off an undisclosed number of employees as it undertakes a restructuring of its corporate workforce.
In a communication addressed to staff, CEO and Chairman Brian Niccol emphasized that the prominent coffee chain from Seattle seeks to establish clear ownership and accountability over tasks to facilitate better decision-making. He acknowledged the need to minimize complexity and break down silos within the organization.
Niccol remarked, “Our size and structure may hinder our efficiency, characterized by excessive layers, small team managers, and roles that mainly focus on coordinating tasks.”
It was clarified that these layoffs are not expected to affect baristas or employees working on the front lines in Starbucks locations. Niccol assured employees that further details regarding these changes would be shared by early March.
“I do not take these decisions lightly, and I understand that there will be worry and uncertainty in the interim,” he said. “I wanted to be forthright about our developments and strategies, and ensure this message comes directly from me.”
Starbucks currently employs around 16,000 individuals within its corporate support sectors, encompassing roles in roasting, distribution, warehousing, and store development. This total includes roughly 10,000 personnel located in the United States and 6,000 in international branches. However, the company did not specify the size of the corporate support staff.
Globally, Starbucks has a workforce of 361,000 people. Over the prior year, the company encountered lackluster sales as American consumers reduced their spending and many Chinese customers opted for lower-priced competitors.
The company brought Niccol on board in September, drawing from his extensive marketing background previously with Taco Bell and Chipotle, to spearhead a recovery effort.
This article was initially published on January 17, 2025, and updated on January 20, 2025, to clarify that the 16,000 corporate employees include support staff, roasters, warehouse workers, distribution personnel, and store development teams.
