Starbucks, the global coffee chain, has announced that it will lay off 1,100 corporate employees. This layoff is considered the largest in the company's history.
New Delhi: Coffee giant Starbucks has announced the layoff of 1,100 corporate employees, marking the largest such cut in the company's history. In a letter to employees, CEO Laxman Narasimhan stated that this measure is part of a restructuring effort in response to declining sales. The goal is to increase efficiency in operations, enhance accountability, reduce complexity, and promote better alignment.
Why this 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 Laxman Narasimhan stated that his aim is to restore Starbucks' core personal coffeehouse experience and ensure better service for customers.
10 Key Points Regarding Starbucks' Layoffs
* Starbucks is laying off 1,100 employees, along with eliminating numerous vacant positions.
* This is one of the largest layoffs in the company's history.
* Baristas working in roasting, warehousing, and stores will not be affected by these layoffs.
* Starbucks employs over 16,000 people globally.
* Narasimhan hinted in January 2024 that layoff announcements would be made by March.
* The company is working on plans to speed up service times and improve customer experience.
* Starbucks' global sales decreased by 2% in fiscal year 2024.
* The company has also been impacted by the growing trend of unionization. Over 10,500 employees in more than 500 stores across America have joined unions.
* Starbucks' new strategy aims to create a more efficient and streamlined organization.
* Those laid off will receive pay and benefits until May 2nd, 2025.
