Starbucks corporate layoffs looming in March: CEO

foxbusiness.com:

Starbucks CEO Brian Niccol says the companys app needs to be more transparent on pricing.

The global coffeehouse chain Starbucks will be cutting corporate jobs as its CEO Brian Niccol continues to implement changes to bolster lagging sales and improve profitability. 

Niccol made the announcement via a notice to employees that was also posted on the Starbucks website.

He highlighted how the company aims to deliver on its «Back to Starbucks» strategy, a series of changes announced last year that aims to enhance customers' in-store experience, but also said it needs to strive for better efficiency, which will ultimately result in layoffs.

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«We have recently begun the work to define the support organization for the future. We are approaching this work thoughtfully, but it will involve difficult decisions and choices. I expect that, unfortunately, we will have job eliminations and smaller support teams moving forward,» Niccol wrote.

People pass by a Starbucks coffee shop in Manhattan, New York, United States on Jan. 15, 2025.  (Mostafa Bassim/Anadolu via Getty Images / Getty Images)

«This work will not affect our in-store teams or the investments we are making in store hours. We will communicate changes by early March.»

He said he does not take such decisions lightly and wanted to be transparent about his plans in order to ensure that employees heard about the plans directly from him. It is unclear how many people will be let go. 

Niccol, who took over as CEO in September, has emphasized the need for the company to get back to its roots as a coffee house.

The «Back to Starbucks» strategy aims to bring back some of the things that made the company the most