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Starbucks will cut 1,100 office jobs as the new executive president Brian Niccol tries to relive the world’s largest coffee shop.
The company said Monday that corporate roles staff must work remote this week, as it informs employees who will be fired.
Employment cuts are the first for Corporate Starbucks workers since 2018 when around 350. Starbucks is not cutting any work inside their coffees.
Employees who are being dismissed will receive a message on Tuesday, the company said.
Niccol was hired in September with the aim of changing Starbucks, since pedestrian traffic and sales were lower spiral.
In a letter to the staff on Monday, Niccol said that Starbuck would cut 1,100 jobs that were currently full, as well as “several hundred” more open and without filling.
The majority of the 361,000 Starbucks employees work within the more than 21,000 coffee shops operating worldwide. Around 16,000 are used in corporate support, even at their headquarters in Seattle, as well as in the development of stores, roasted, manufacturing, storage and distribution. Starbucks did not specify the number of corporate support works within the company.
Starbucks has suffered an extended fall in sales of the same store, including a 4 percent drop in the quarter that ended in December.
Last month, Niccol announced the imminent employment cuts, saying that the company had too many layers. “Our intention is to operate more efficiently, increase responsibility, reduce complexity and promote better integration,” he told the staff on Monday.
The shares increased 0.6 percent shortly after the Wall Street opening bell on Monday.
In his message, Niccol said that the company’s leaders with the state of vice president or higher who have been working remotely now will need to spend at least three days a week at the Starbucks offices in Seattle or Toronto, the Canadian base of The company. Employees with director titles and below with a state of remote work may retain that state.
This week, however, Starbucks asked corporate staff to work remotely, since it informs the 1,100 employees that will be fired, citing privacy reasons. Those whose works have been cut will receive an email on Tuesday from a member of the executive leadership team, the company said.
