Starbucks Layoffs: Starbucks Corporation is cutting 1,100 corporate jobs as the coffeehouse chain aims to increase the firm’s efficiency in a turnaround effort, reported the news agency Bloomberg on Monday, February 24.
According to the agency report, this job cut represents nearly 7 per cent of the firm’s global workforce working outside of company-owned stores. The jobs cuts will also include roles like warehousing which are not affected by the restructuring plans.
Starbucks Chief Executive Officer (CEO) Brian Niccol, who joined the firm in September 2024, announced the restructuring plans amid declining sales for the coffeehouse chain.
“I recognize the news is difficult,” said Niccol, quoted the news agency. “We believe it’s a necessary change to position Starbucks for future success,” he said.
Starbucks Corp. shares were trading 1.2 per cent higher at $113.06 at 10:53 a.m. (EST) on Monday, February 24, compared to $111.75 at the previous Wall Street close.
The company’s stock has gained nearly 17 per cent in the last one-year period, compared to the 18 per cent rise in the S&P 500 index, reported the news agency.
The news report also mentioned that the job cuts will not affect people working in the cafes or in the warehousing, manufacturing, distribution and roasting operations.
The corporate employees who are losing their jobs will get pay and benefits until May 2, 2025, after which they will receive a severance package based on the tenure served, reported the news agency quoting Starbucks.
Office comeback
According to the agency report, Starbucks will mandate its employees at the vice president and above level to come work from the Seattle or Toronto offices for three days in a week.
Corporate employees at the director level or below will be able to keep working remotely, but the hiring for future role in the company will require people to work from either of the two officer, as per the agency report.
