Starbucks announces corporate layoffs amid sales decline
The American coffeehouse chain Starbucks has announced a reduction in corporate staff. The company's CEO, Brian Niccol, informed the team in a letter.
According to Reuters, Starbucks CEO Brian Niccol announced that the company intends to carry out layoffs due to unsatisfactory sales results for the past year. Details of the planned changes are expected to be presented at the beginning of March 2025.
Plans of the new head of Starbucks
Brian Niccol has been the president of the coffeehouse chain since September 2024. Since 2018, Niccol managed the Chipotle Burrito chain. As president, he contributed to doubling its revenues from $4.5 (£3.7) billion to $9.9 (£8) billion. He is considered one of the best in the industry.
After four months as CEO of the Starbucks chain, he presented a series of actions aimed at improving the company's performance. According to Reuters, Starbucks is currently grappling with increasing competition and declining demand in the USA and China.
— Our size and structure can slow us down, with too many layers, managers of small teams, and roles focused mainly on coordinating work — Niccol wrote in a message to employees. He added that the company will analyse the role and structure of support teams worldwide.
