Starbucks plans to lay off 1,100 employees from its corporate offices. File Photo by Billie Jean Shaw/UPI
Feb. 24 (UPI) — Starbucks plans to lay off more than 1,000 corporate employees, CEO Brian Niccol announced in a note to staff on Monday.
Niccol said the layoffs will impact 1,100 employees from its corporate offices and will not staff hundreds of currently open positions throughout the chain.
While the layoffs will not hit baristas at its local cafes, Niccol said Starbucks is building a new model with “smaller, more nimble teams.” Rivals with cheaper products have been sipping away at Starbucks’ bottom line for four straight quarters.
“I recognize the news is difficult,” Niccol said in his message to employees. “It is not a decision the leadership team took lightly. We understand the real effect this has on our partners’ lives and their families. We believe it’s a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and customers they serve.”
Niccol said those losing their jobs will be notified by midday on Tuesday while those with responsibility changes will be informed by the end of the week.
“We’re committed to sharing the news with partners who are affected thoughtfully and with the respect they deserve,” Niccol said. “We will also do everything we can to support those leaving.
“This includes providing a comprehensive severance package to support them. We will share more on the timeline for this week and how we are taking care of partners shortly.”
Starbucks has about 16,000 workers who are employed away from their cafes. They are involved in corporate support, roasting, manufacturing warehousing, and distribution.