'Necessary Change': Starbucks Is Laying Off 1,100 Corporate Workers and Eliminating Open Roles — Read the Memo The workers who are being laid off will be told by midday on Tuesday, Feb. 25.
By Erin Davis
In January, Starbucks Chairman and Chief Executive Officer Brian Niccol told employees that corporate layoffs were on the horizon.
Now, the horizon is here. Niccol told staff in a new memo Monday that 1,100 corporate jobs would be eliminated the next day, noting that his team has been "evaluating the role, structure, and size of our global support teams to help us deliver on our 'Back to Starbucks' plan and position the company for future success."
Related: It's Pay-to-Stay at Starbucks As the Coffeehouse Reverses Its Open-Door Policy
"The leadership team has finished that work, and this week, we will communicate the changes we're making," Niccol wrote. "This includes the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions."
Workers who are being laid off will be told by midday Tuesday, Feb. 25, the memo says.
The cuts will not affect employees who work at Starbucks cafes or in the roasting, manufacturing, warehousing, and distribution divisions.
Related: Starbucks Is Limiting Mobile Orders to Reclaim the Coffeehouse's 'Connection' With Customers
As of last year, Starbucks had around 16,000 employees working outside of store locations, per CNBC.
Since joining the coffee chain in September, Niccol has created numerous changes, including revamping the code of conduct, adding ceramic mugs, and capping mobile orders, all in an effort to return Starbucks to its coffeehouse roots and improve lagging sales.
Starbucks has reported a decline in same-store sales (the total sales in stores that have been operating for a year or more) for four consecutive quarters.
"We believe it's a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve," Niccol wrote.
Read the full memo, here.
