The American coffee giant reduces the complexity of its structure and eliminates silos of slow communication within the company.
Starbucks plans to lay off 1,100 company employees worldwide as new chairman and CEO Brian Niccol streamlines operations. Starbucks also canceled hundreds of open and unfilled locations, Nicole said. “Our goal is to operate more effectively, increase accountability, reduce complexity and drive better integration,” Nicole wrote in the letter.
Starbucks has 16,000 company support employees worldwide, but includes some unaffected employees, such as baking and warehouse employees. Baristas in company stores are not included in layoffs. Starbucks hired Niccol last fall to turn the sales around.
Nicole said in January that the company’s layoffs will be announced in early March. He said all work must be supervised by people who can make decisions, while the Seattle Coffee giant reduces the complexity of its structure and eliminates silos of slow communication within the company.
5 points to know:
1. Starbucks also said it will lay off 1,100 corporate employees worldwide this week – CEO Brian Niccol’s citation needs to be “operated more effectively”.
2. “Our size and structure can slow us down, while managers on small teams and managers in roles focus primarily on coordinating their work,” Nicole wrote.
3. Nicole said he wanted to improve service hours, especially in the rush of the morning – and rebuild the shop as a community gathering place.
4. Starbucks said the cuts will reduce waiting time, improve consistency and make room for innovation.
5. The cuts will affect nearly 7% of the 16,000 employees working outside the company’s owned stores.
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Starbucks Cut-in Menu
Nicole also cuts items from Starbucks menu and tries its ordering algorithm to better handle the mix of its moves, drives and in-store orders. The Seattle-based company added that simplifying its menu will allow it to focus on fewer, more popular items that excel in execution. Starbucks’ global same-store sales, or at least one year’s sales, fell 2% in its fiscal 2024 fiscal year, which ended September 29. In the United States, customers are tired of rising prices and the increase in waiting time.
(with input from AP/PTI)
