Starbucks layoffs: According to the news agency Bloomberg Monday, February 24.
According to the agency’s report, the job cuts account for nearly 7% of the company’s global workforce working outside of the company’s owned stores. The cuts will also include roles such as warehouses that are not affected by the restructuring plan.
Starbucks CEO (CEO) Brian Niccol joined the company in September 2024, announcing a restructuring plan amid a decline in sales of the coffee house chain.
“I know the news is difficult,” Nick said. “We believe that positioning Starbucks for future success is a necessary change,” he said.
Starbucks shares rose 1.2% at 10:53 a.m. EST on Monday, February 24, at $113.06, while the last Wall Street stock closed was $111.75.
The company’s stock has risen nearly 17% over the past year, while the S&P 500’s 18% rise, the news agency reported.
The news report also mentioned that layoffs will not affect people working in cafes or warehousing, manufacturing, distribution and baking operations.
The report said that company employees who lost their jobs will receive salaries and benefits until May 2, 2025, after which they will receive severance payments based on the term they serve.
Office comeback
According to the agency’s report, Starbucks will work from its Seattle or Toronto office for three days within a week to get off work at its vice president and above.
Company employees at the director level or above will be able to continue working remotely, but hiring future positions in the company will require people to work from either of the two officials, according to agency reports.
