Crisis at Starbucks? 1,100 Corporate Layoffs Amid Struggles in U.S. and China

February 24, 2025 Raj Tiwari Business, World 0

Crisis at Starbucks? 1,100 Corporate Layoffs Amid Struggles in U.S. and China

Starbucks will lay off 1,100 corporate employees worldwide. The company wants to simplify its structure and work faster. Chairman and CEO Brian Niccol shared this in a letter to employees on Monday.

Employees affected by the layoffs will get notifications by Tuesday afternoon. Starbucks will also cut several hundred unfilled positions. This helps the company operate more smoothly.

Why Is Starbucks Laying Off Employees?

According to AP News: Niccol wants Starbucks to work better and faster. He believes the company has too many layers of management. This slows down decision-making. He wants every team to report to someone who can take quick action.

Niccol said the company must reduce complexity. He wants to break down silos that block communication. The goal is to boost accountability and better connect different teams.

Starbucks has around 16,000 corporate employees worldwide. This number includes workers in support roles, like roasting and warehouse staff. However, baristas in stores will not lose their jobs.

Niccol’s Plan to Turn Starbucks Around

Starbucks hired Niccol last fall to fix declining sales. He plans to speed up service, especially during busy mornings. He also wants stores to feel like community hubs again.

Niccol is trimming Starbucks’ menu to make orders faster. He is also testing new algorithms to balance mobile, drive-thru, and in-store orders.

Sales Struggles in the U.S. and China

Starbucks’ global same-store sales dropped 2% in the 2024 fiscal year. U.S. customers grew frustrated with rising prices and long wait times. Meanwhile, Starbucks struggled in China, its second-largest market. Cheaper competitors pulled customers away.

What’s Next for Starbucks?

Despite the layoffs, Starbucks aims to come back stronger. Niccol wants to make the company faster, more efficient, and better connected. His goal is to improve customer experience and boost sales worldwide.

Starbucks shares stayed flat in premarket trading on Monday. But fans and investors are watching closely to see how these changes will shape the company’s future.

 

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About Raj Tiwari 33 Articles
Hello, I'm Raj Tiwari. As a content writer for PanAsiabiz, I provide timely and informative articles to our audience, keeping them up-to-date on current events and trending topics. Although I am new to the field, I'm committed to ongoing learning and self-improvement, ensuring accurate and engaging content for our readers.

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