Connect with us

Hi, what are you looking for?

Global Markets ReviewGlobal Markets Review

Business

Starbucks to lay off 1,100 corporate workers as sales sag

Starbucks will lay off 1,100 corporate employees and will not fill several hundred other open positions, the coffee chain’s CEO Brian Niccol said Monday.

The cuts will not affect workers at the company’s cafes.

In a message to corporate employees, Niccol said Starbucks is “simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.”

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote. “All with the goal of being more focused and able to drive greater impact on our priorities.”

The layoffs come as Starbucks tries to draw coffee drinkers back to its cafes after same-store sales declined for four straight quarters. As customers turn to cheaper rivals in Starbucks’ two largest markets, the U.S. and China, Niccol has tried to revamp operations since he took the helm of the company last year, including by speeding up service.

Starbucks had about 16,000 employees who work outside of store locations as of last year. The cuts will affect people who work in corporate support, but not roasting, manufacturing, warehousing and distribution.

This post appeared first on NBC NEWS

You May Also Like

Business

Apple on Monday reaffirmed a commitment to invest hundreds of billions of dollars in the U.S. over the coming years amid pressure from President...

Business

Denny’s is the latest nationwide restaurant chain to announce surcharges for meals that include eggs in response to a nationwide shortage that has sent...

Business

JPMorgan Chase CEO Jamie Dimon on Monday said the U.S. government is inefficient and in need of work as the Trump administration terminates thousands of federal employees and works...

Editor's Pick

With US tariffs on Canada, Mexico, and China having taken effect at midnight on Tuesday, US indexes extended their Monday losses, deepening concerns over...