Starbucks Plans Layoffs, Restructuring
Starbucks has announced plans for a corporate restructuring that will result in job eliminations across its support teams, though store-level teams and store hours will remain unaffected. The layoffs will be finalized and announced by early March, according to an open letter to Starbucks' partners from CEO Brian Niccol posted on the company’s website.
“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.
… “I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me.“
Since Nicol took over the helm in September, Starbucks has been focused on improving the in-store experience – bringing back the condiment bar, writing on cups, more ceramic mugs and a revised code of conduct. The coffee retailer has removed the non-dairy milk upcharge. In its plan to become to be 'Best Job in Retail', Starbucks has doubled paid parental leave for its U.S. retail teams and aim to promote internally for 90% of retail leadership roles in three years.
Streamlined Operations
The restructuring plan aims to streamline corporate operations and improve overall efficiency. Key areas of focus include:
- Increased Ownership and Accountability: Starbucks plans to ensure all work has a clear owner responsible for decision-making and achieving specific goals, enabling faster progress.
- Clear Priorities and Reduced Complexity: The company’s “Back to Starbucks” plan remains the top priority, with a focus on reducing complexity and eliminating conflicting objectives.
- Better Integration: Starbucks seeks to reduce silos and eliminate duplication of efforts. Niccol wrote that the company's size and structure "can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work."