Business Insights

Starbucks Plans Layoffs: Here’s Who’s Affected

Ken Metral

21 Jan 2025 — 1 min read

Credit: CEO Brian Niccol/Starbucks Corporation

Starbucks has announced plans to lay off an unspecified number of corporate employees as part of a broader effort to streamline operations and improve efficiency. Chairman and CEO Brian Niccol shared the news in a letter to employees, citing the need to reduce organizational complexity and eliminate silos.

Key Highlights

Focus on Efficiency: Niccol emphasized that Starbucks’ size and structure have created inefficiencies, including too many management layers and roles primarily focused on coordinating work. The company aims to assign clear ownership and accountability to all tasks.
Affected Roles: The layoffs will target corporate support staff, including employees in roasting, distribution, warehousing, and store development. Starbucks employs 16,000 people in these areas globally, out of a total workforce of 361,000.
Baristas Not Impacted: The layoffs will not affect in-store employees, such as baristas and retail staff.

CEO’s Message

Niccol addressed the uncertainty created by the announcement, assuring employees that the company would communicate decisions by early March.

“I do not take these decisions lightly, and I appreciate that this will create uncertainty and concern between now and then,” Niccol wrote. “I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me.”

Business Challenges

Declining U.S. Sales: Starbucks has faced weaker consumer spending in its home market over the past year.
Competition in China: The company is grappling with increased competition from lower-priced rivals in its second-largest market.
Leadership Shift: Niccol, who joined Starbucks in September 2024 after leading Taco Bell and Chipotle, was brought in to steer the company toward renewed growth.

Looking Ahead

The restructuring is part of Starbucks’ broader strategy to address declining performance and adapt to market pressures. While the exact number of layoffs has not been disclosed, the move reflects the company’s commitment to simplifying operations and positioning itself for future success.

Starbucks plans to provide updates as the process unfolds, ensuring transparency and clear communication for employees during this transition.

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