Starbucks will cut 1,100 support jobs and “several hundred” additional open and unfilled positions, according to a letter from CEO Brian Niccol to employees. The layoffs come after Niccol’s January announcement that the coffee retailer’s leaders were taking a careful look at how its support teams are organized.
In November 2024 Niccol laid out details of the “Back to Starbucks” plan, designed to re-establish the chain as the “Community Coffee House,” including simplifying an “overly complex” menu, returning to self-service condiment bars and doing a better job of balancing mobile and in-person orders.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” said Niccol in the layoff announcement. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”
For Q1 of its 2025 fiscal year, which ended Dec. 29, 2024, Starbucks had revenues of $7.07 billion, down 1% from the $7.12 billion generated during the same period the previous year. Comparable store sales declined 4%, and the company opened 377 net new stores, ending the period with 40,576 stores globally: 53% company-operated and 47% licensed.
Advertisement
