Starbucks announced on Monday it will eliminate 1,100 corporate roles as CEO Brian Niccol pushes to streamline operations and revitalize the coffee chain’s business.
In a letter to employees, Niccol stated the layoffs will include current support partner roles and several hundred unfilled positions. “We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams,” he said.
The move aims to enhance efficiency, boost accountability, and reduce complexity as Starbucks struggles with weak demand for its premium beverages in key markets like the U.S. and China.
Niccol, known for turning around Chipotle Mexican Grill, stepped in as Starbucks’ CEO last year. He introduced a “Back to Starbucks” plan, focused on reviving the brand’s coffeehouse culture and simplifying its operating structure.
Despite the layoffs, Niccol reassured that in-store teams and investments in store hours will remain unaffected. The company will continue hiring for essential roles aligned with its new support structure.
Niccol had hinted at job cuts earlier this year, promising more details by March.
This restructuring marks a strategic shift as Starbucks works to regain momentum and strengthen its position in the competitive coffee market.
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