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February 26, 2025 | 03:47 pm
TEMPO.CO, Jakarta - Starbucks, the global coffee chain based in the United States, plans to lay off 1,100 employees. Starbucks CEO Brian Niccol stated that this is part of a restructuring effort as the company is experiencing a decline in sales.
"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Niccol said in a letter to employees, as quoted from Reuters on Wednesday, February 26, 2025.
"Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration." He explained that the company is now operating more efficiently. Starbucks wants to increase accountability, reduce complexity, and promote better integration.
Niccol stated that the company will also remove several less popular drinks from the menu, including some frappuccino blends and white hot chocolate, in line with the menu simplification drive.
Niccol was appointed as the CEO of Starbucks last year. At that time, the company's stocks had dropped 40 percent from the highest price in 2021. The decline was due to weak sales in the U.S. and China.
Since taking over the leadership six months ago, Starbucks' stock has risen by over 22 percent. The company's stock rose nearly 2 percent in Tuesday afternoon trading, February 25, 2025.
However, amid the news of layoffs, Starbucks reportedly will continue to recruit priority positions that match the new support structure. Meanwhile, it will enhance the capabilities and capacities needed by the company.
Niccol stated that this efficiency move will not affect the teams inside the stores or the investments made by Starbucks in store operating hours.
According to the 2024 report, Starbucks employed around 211,000 people in the United States and about 150,000 employees internationally.
In 2018, Starbucks had planned to lay off 350 global corporate employees as part of a restructuring plan under then-CEO Kevin Johnson.
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