Starbucks plans to dismiss 1,100 employees worldwide, the new president and chief executive officer Brian Niccol said on Monday in a letter to the staff.
Niccol said that employees who are dismissed will be informed by the South and that the company would also eliminate “several hundred open and not additional positions”.
“We simplify our structure, remove the layers and duplication and create smaller and more agile teams. Our intention is to operate more efficiently, increase responsibility, reduce complexity and stimulate better integration. All in order to be more concentrated and able to generate a greater impact on our priorities, “said Niccol in his letter to the employees.
A Starbucks spokesman told Global News that they had no information at this stage to find out if Canadian employees would be assigned. However, Niccol’s letter mentioned the “new leadership expectations” for the North American executive management teams.
“In the future, VP + leaders in North America will have to be present with their teams in our Seattle (United States) and Toronto (Canada) offices at least three days a week,” he said in his letter.
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Niccol has added that if existing employees will continue to keep their hybrid or remote work structures, “hiring for future roles will require that partners are based on Seattle or Toronto, with the exception of remote posts designated by the business”.
Starbucks has 16,000 business support employees worldwide, but this includes certain employees who are not affected, such as roasting and warehouse staff. Baristas in the company’s stores are not included in layoffs.
Niccol said in January that corporate layoffs would be announced in early March. He said that all work should be supervised by someone who can make decisions while the Seattle Café giant reduces the complexity of its structure and eliminates silos within the company that slows communication.
“Our size and structure can slow us down, with too many diapers, small team managers and roles focused mainly on coordination work,” wrote Niccol.
Starbucks hired Niccol last fall to return slow sales. He said he wanted to improve service times – especially during the morning rush – and restore stores as community gathering.
Niccol also cuts the elements of the Starbucks menu and experiences his control algorithms to better manage his mixture of mobile controls, driving and in stores.
Global sales of Starbucks, or sales in locations, open at least a year, fell by 2% during its 2024 financial year, which ended on September 29. In the United States, clients tired of increasing price increases and waiting times. In China, its second largest market, Starbucks has faced increasing competition from cheaper rivals.
Starbucks’ actions were stated in trade prior to marketing on Monday.
– with Associated Press files
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