Starbucks announced on Monday that it will lay off 1,100 corporate employees and leave several hundred open positions unfilled, according to CEO Brian Niccol. The layoffs will not impact workers at the company’s cafes. In a message to corporate employees, Niccol stated that Starbucks is “simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.” He emphasized the goal of operating more efficiently, increasing accountability, reducing complexity, and driving better integration to focus on priorities. The layoffs come as Starbucks struggles to attract coffee drinkers back to its cafes after same-store sales declined for four consecutive quarters. Facing competition from cheaper rivals in its two largest markets, the U.S. and China, Niccol has been working to revamp operations since taking over last year, including efforts to speed up service. Starbucks employed approximately 16,000 people outside of store locations as of last year. The layoffs will affect corporate support roles but not those in roasting, manufacturing, warehousing, and distribution. — news from CNBC
