Starbucks Corp (NASDAQ:SBUX, ETR:SRB) is laying off approximately 1,000 corporate employees as part of its new CEO Brian Niccol’s turnaround plan.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in a letter to staff.
Impacted employees will be notified by midday on Tuesday and will be provided with a “comprehensive severance package.”
The headcount reduction does not impact store workers such as baristas, warehouse and roasting employees.
The company said it will also leave several hundred positions vacant as part of its cost-cutting plan.
Niccol, who took the helm in September 2024, aims to simplify the company’s structure, eliminating redundancies, and enhancing operational efficiency. He is focused on improving service times, especially during peak hours, including cutting items from Starbucks’ menu and trialling new ordering algorithms.
The layoffs come after four consecutive quarters of declining same-store sales.
Shares of Starbucks traded up 1.3% at about $113 on Monday morning.