Starbucks to Cut 1,100 Corporate Employees in Move Toward ‘Smaller, More Nimble’ Teams

Starbucks (SBUX) plans to lay off 1,100 corporate employees, CEO Brian Niccol said Monday, while also leaving several hundred open positions unfilled.

In an open letter to employees, Niccol called the move “a necessary change to position Starbucks for future success” by creating “smaller, more nimble” support teams. Cafe workers would not be affected, nor would corporate employees in non-support roles such as roasting, manufacturing and distribution, a spokesperson told Investopedia. The company had about total 16,000 corporate employees as of Sep. 29, the spokeperson added.

The layoffs are part of a broader “Back to Starbucks” business turnaround plan kickstarted by Niccol when he took the CEO position in September. The goal has been to stem declines in sales and traffic while positioning the chain to double its U.S. footprint. In January, the coffee giant said net sales fell 0.3% year-over-year in its fiscal first quarter.

So far, Starbucks has been busy, announcing sweeping changes to its cafes, including a pared-back menu, the return of baristas writing customers’ names on cups, requiring customers to make a purchase to use the restroom, new digital menu boards expected this year, and expanded free refills. Store aesthetics are also under review, as Starbucks tests new types of seating and brings back touches like ceramic mugs and accessible condiment bars. 

Shares of Starbucks are up 25% since Brian Niccol joined the company, adding more than 1% intraday Monday.