Starbucks is set to layoff 1,100 corporate workers as CEO Brian Niccol works to simplify the coffee company’s structure.
In a message to those employees, Niccol said, “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,” CNBC reported on Monday.
The company has been trying to bring customers back to its cafes after sales drooped during four straight quarters. Starbucks has also been struggling as customers choose cheaper options.
It is important to note that baristas who make the beverages in Starbucks’ stores will not be affected by the layoffs, the Associated Press (AP) reported on Monday.
Starbucks poached Niccol from Chipotle in 2024 amid declining sales, “criticism from conservatives, and pressure from activist investors,” according to Breitbart News:
Starbucks has been under fire from conservatives, who have criticized its extreme promotion of diversity, equity, and inclusion (DEI) ideology as well as a corporate strategy that often appears to be bent around leftwing climate change priorities. It is often described as a prime example of “woke capitalism.”
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The Seattle-based coffee kingpin has been struggling to keep its mojo. Sales have been slipping, and the company even slashed its financial outlook twice this year as foot traffic in its cafes dwindled. Starbucks is also feeling the heat from tougher competition in China, one of its biggest growth markets.
In December, Starbucks baristas in several major U.S. cities launched a five-day strike regarding a labor agreement, according to Breitbart News.
Per the AP article, Niccol wants to improve the company’s service times and revamp stores into places where people gather.
“Niccol is also cutting items from Starbucks’ menu and experimenting with its ordering algorithms to better handle its mix of mobile, drive-thru and in-store orders,” the report said.
