Starbucks, the global coffeehouse giant, is set to reduce its corporate workforce as CEO Brian Niccol continues to implement his “Back to Starbucks” strategy aimed at revitalizing the company’s performance, Fox Business reports.
Niccol announced the upcoming job cuts in a notice to employees, which was also posted on the company’s website.
The move comes as Starbucks seeks to enhance efficiency and profitability, key goals outlined in Niccol’s strategy. While the “Back to Starbucks” plan emphasizes improved customer experience, including in-store enhancements, it also necessitates a streamlining of operations, according to Niccol. He emphasized that the decision to reduce corporate staff was not taken lightly, and he sought to ensure employees learned of the plans directly from him to be transparent. The number of corporate positions to be eliminated was not specified.
Niccol, who took over as CEO in September, has consistently stressed the importance of returning to Starbucks’ core identity as a coffeehouse. This strategy involves reinstating features that previously defined the brand, such as condiment bars, the use of ceramic mugs, and the practice of baristas writing customer names on cups with Sharpies. The company is also removing extra charges for non-dairy milk customizations.
Starbucks is also focusing on improving service speed with a goal of a four-minute wait time in cafes and has extended coverage hours in over 3,000 locations. Additionally, the company recently announced a change in policy to prioritize paying customers’ access to seating and restrooms.
Amidst the restructuring, Starbucks is also taking steps to create a more positive work environment. Starting this spring, paid parental leave benefits will be doubled, and the company is committed to filling 90% of retail leadership roles internally to promote long-term employee growth. The Starbucks College Achievement Plan, offering 100% college tuition coverage for eligible employees, and stock options for eligible partners will continue as well.
Prior to Niccol’s arrival, the company faced significant challenges, including a wave of unionization efforts nationwide and two consecutive disappointing fiscal quarters, marked by declining customer traffic. Niccol, who succeeded former CEO Laxman Narasimhan, is seeking to improve both financial performance and overall employee experience, but has also faced employee strikes at hundreds of stores.
