Global coffee chain Starbucks has announced it will lay off 1,100 corporate employees. This layoff is considered the largest reduction in the company's history.
New Delhi: Coffee giant Starbucks has announced the layoff of 1,100 corporate employees, marking the largest such reduction in the company's history. In a letter to employees, CEO Brian Niccol stated that this move is part of a restructuring aimed at improving operational efficiency, increasing accountability, reducing complexity, and fostering better integration amidst declining sales.
Reasons for the Decision
Starbucks has faced declining global sales in recent months. Many customers have expressed dissatisfaction with the company's high prices and long wait times. CEO Brian Niccol stated his aim is to restore Starbucks' original individual coffeehouse experience and ensure better customer service.
10 Key Points Regarding Starbucks' Layoffs
* Starbucks is laying off 1,100 employees, along with eliminating several vacant positions.
* This represents one of the largest layoffs in the company's history.
* Barista employees working in roasting, warehouse, and store operations will not be affected by this layoff.
* Starbucks employs over 16,000 people worldwide.
* Niccol hinted in January 2024 that layoff announcements would be made by March.
* The company is working on a plan to accelerate service times and improve the customer experience.
* Starbucks experienced a 2% decline in global sales during the 2024 fiscal year.
* The company has also been impacted by the growing trend of unionization. Over 10,500 employees in more than 500 stores across the US are unionized.
* Starbucks' new strategy aims to create a more efficient and streamlined organization.
* Laid-off employees will receive salary and benefits until May 2, 2025.
