Starbucks is letting go of 1,100 company workers because sales are down.
Starbucks employees will not be affected by the layoffs.
The CEO of the coffee chain, Brian Niccol, said Monday that Starbucks will let go of 1,100 corporate workers and won’t be advertising for several hundred other open jobs.
The cuts won’t affect people who work in the company’s coffee shops.
Nicholo wrote to corporate workers that Starbucks is “simplifying our structure, getting rid of layers and duplication, and making smaller, more flexible teams.”
“Our goal is to work more efficiently, make everyone more accountable, simplify things, and push for better integration,” Niccol wrote. “All in order to have a clearer mind and make a bigger difference with our priorities.”
Starbucks is trying to get people to come back to its coffee shops after same-store sales have gone down for four quarters in a row. People in the U.S. and China, which are Starbucks’ two biggest markets, are switching to cheaper competitors. Since Niccol took over the company last year, he has tried to improve things by doing things like speeding up service.
As of last year, Starbucks had about 16,000 workers who worked outside of stores. Some business support workers will lose their jobs, but not those who work in roasting, manufacturing, warehousing, or distribution.
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