Starbucks is laying off 1,100 employees worldwide as part of a restructuring and streamlining effort led by the new chairman and CEO, Brian Niccol.
In a letter to employees released on Monday, Niccol stated that Starbucks would notify the affected employees of their job loss by noon on Tuesday. The CEO also mentioned that the company would be eliminating several hundred vacant positions.
“We are simplifying our structure, removing layers and duplicate roles, creating smaller, more agile teams. Our goal is to improve operational efficiency, strengthen accountability, reduce complexity, and drive better integration. All of this is to be more focused and have a greater impact on our priorities,” Niccol wrote.
In addition to the layoffs, Starbucks is planning to tighten flexible work arrangements for VP+ level staff in the North America region, requiring these executives to work in-person at the company’s offices in Seattle or Toronto at least three days a week.
Starbucks employs 16,000 support staff globally, including some employees in roles like baking and warehousing that are not affected by the current layoffs. Baristas at the company’s stores are also not included in the job cuts.
Niccol had previously indicated in January that the company would announce its layoff plan in early March. Starbucks hired Niccol from Chipotle Mexican Grill last August with the aim of reversing the coffee giant’s sluggish sales performance.
Niccol’s goal is to refocus the company as a “community coffeehouse” with comfortable seating, rather than a coffee shop focused on getting customers out the door quickly with to-go orders.
Starbucks is reducing its menu by 30% to simplify operations and focus on selling the most profitable items.