Starbucks has decided to eliminate 1,100 corporate jobs as part of CEO Brian Niccol’s plan to boost the company’s performance.
This decision comes as Starbucks faces declining sales, and these job cuts are likely an effort to reduce costs and restructure the business to help it recover, as per Reuters.
Niccol said in a letter to employees, "We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.”
The letter added, “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."
Niccol was named CEO last year at a time when the company was facing financial struggles, with its stock dropping 40% due to declining demand in the US and China.
He then introduced the “Back to Starbucks” plan, which focuses on cutting jobs and improving customer experience to improve business operations.
Since he took over six months ago, Starbucks’ stock has risen by more than 22%.
"We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need," Niccol said, adding the move would not affect in-store teams or the investments Starbucks is making in store hours.
In addition to this, Starbucks has announced it will remove some less popular drinks from its menu, including certain frappuccino flavours and white hot chocolate.
