In January, Starbucks Chairman and Chief Executive Officer Brian Niccol told employees that firm layoffs were connected the horizon.
Now, the sky is here. Niccol told unit in a caller memo Monday that 1,100 firm jobs would beryllium eliminated the adjacent day, noting that his squad has been "evaluating the role, structure, and size of our world support teams to thief america present connected our 'Back to Starbucks' scheme and position the institution for early success."
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"The activity squad has vanished that work, and this week, we will pass the changes we're making," Niccol wrote. "This includes the difficult determination to destruct 1,100 existent support partner roles and respective 100 further unfastened and unfilled positions."
Workers who are being laid disconnected will beryllium told by midday Tuesday, Feb. 25, the memo says.
The cuts will not impact labor who activity astatine Starbucks cafes aliases successful the roasting, manufacturing, warehousing, and distribution divisions.
Related: Starbucks Is Limiting Mobile Orders to Reclaim the Coffeehouse's 'Connection' With Customers
As of past year, Starbucks had astir 16,000 labor moving extracurricular of shop locations, per CNBC.
Since joining the java concatenation successful September, Niccol has created galore changes, including revamping the code of conduct, adding ceramic mugs, and capping mobile orders, each successful an effort to return Starbucks to its coffeehouse roots and amended lagging sales.
Starbucks has reported a diminution successful same-store sales (the full income successful stores that person been operating for a twelvemonth aliases more) for 4 consecutive quarters.
"We judge it's a basal alteration to position Starbucks for early occurrence — and to guarantee we present for our greenish apron partners and the customers they serve," Niccol wrote.
Read the afloat memo, here.
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