Starbucks (SBUX) announced that it will eliminate some business jobs, because CEO Brian Niccol focuses on the company’s turnaround plan.
In a letter obtained by Yahoo Finance that was sent to employees on Monday, Niccol shared that the company plans to eliminate 1,100 support roles and several hundred extra open and non -filled positions worldwide.
The memo said that employees will be informed on Tuesday 25 February. Niccol said the dismissals are meant to simplify the structure of the company, while “remove layers and duplication and create smaller, more agile teams.”
He added: “Our intention is to work more efficiently, increase the accountability, to reduce complexity and stimulate better integration. All with the aim of being more focused and is able to have more impact on our priorities . “
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Relaxed employees receive an “extensive severance payment,” Niccol said. According to sources that are close to the issue, this includes the current reward and benefits until at least 2 May. Moreover, employees are eligible for dismissal One-on-one career coaching.
From last September, Starbucks employed around 361,000 employees worldwide and 211,000 in the US. A majority of employees are employees in the store who will not be affected by this dismissal. Employees who work in scheduling, production, storage and distribution activities will also not be influenced.
On the contrary, the dismissal influences the functions of Starbucks’ business support.
In the letter, Niccol also asked North -American leaders at Vice President level and higher to personally report to offices in Seattle for American employees and Toronto for Canadian employees “at least three days a week”.
He added that Starbucks will not change his hybrid work policy for existing employees, but the policy will change for future employees.
“In general, remote partners will retain their status remotely today,” Niccol wrote. “Hiring future roles will require that partners are located in Seattle of Toronto, except for company positions for external external.”
The restructuring announcement comes after the coffee giant, based in Seattle, beat the expectations of low income for the first quarter under the leadership of Niccol. Niccol took course on September 9 and implemented a “Back to Starbucks” plan, which requires a focus on core coffee products, better prices and faster service.
“The first quarter in the results of 2025 met our expectations, it appears clear[ed] Some signs of progress … We still have a lot of work to do, “Niccol told investors about the win call.
