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Starbucks Axing 1100 Corporate Workers

In-store teams and investments not impacted by cuts, CEO says

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Starbucks’ layoffs will include an as-yet undisclosed number of staffers at its Seattle headquarters. Photo: JHVEPhoto/iStock by Getty Images

Starbucks’ (Seattle) back-to-basics strategy now includes trimming its corporate workforce by 1100 staffers. Chairman and CEO Brian Niccol communicated that news via a company-wide email.

“In January, I shared that we were evaluating the role, structure and size of our global support teams to help us deliver on our ‘Back to Starbucks’ plan and position the company for future success,” Niccol wrote. “The leadership team has finished that work, and this week, we will communicate the changes we’re making. This includes the hard decision to eliminate 1100 current support partner roles and several hundred additional open and unfilled positions.”

Niccol said the cuts are designed to simplifying Starbucks’ structure, removing layers and duplication and creating smaller, more nimble teams. “We believe it’s a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve.

The company also noted that the staff-reduction “does not affect our in-store teams or the investments we are making in store hours.”

In its coverage of the news, CNBC noted that Starbucks had about 16,000 employees who work outside of store locations as of last year, while The Seattle Times reported it was not yet known how many of the cuts will take place at its hometown headquarters.

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