Starbucks to Layoff 1,100 Workers amid Declining Sales

Source: Cheng Xin / Getty

Starbucks is set to lay off 1,100 corporate employees globally as part of a restructuring effort by new Chairman and CEO Brian Niccol.

In the memo, Niccol said the layoffs are meant to simplify the company’s structure while “removing layers and duplication and creating smaller, more nimble teams.”

He added, “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.”

The company aims to operate more efficiently, increase accountability, and reduce complexity.

The layoffs will not affect baristas in the company’s stores. Niccol, who was hired to boost sales, is also cutting items from the menu and experimenting with ordering algorithms to improve service.

Starbucks’ global same-store sales fell 2% in its 2024 fiscal year, prompting the need for changes to address customer concerns.

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