Starbucks Plans To Lay Off 1,100 Employees This Week
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The coffee company Starbucks announced it will eliminate some corporate jobs as CEO Brian Niccol focuses on the company’s turn around plan.
Niccol shared a letter that was sent to employees stating the compant plans to elimiate 1,100 suport roles and several hundred additional open and unfilled positions globally. The memo said employess would be notified by Tuesday about their term with Starbucks, saying they are simplifying the company’s structure while “removing layers and duplication and creating smaller, more nimble teams.”
He added: “Our intent is to operate more efficiently, increasing accountability, reduce complexity and drive better integration. All the goals of being more focused and able to drive greater impact on our priorities.”
The employees that get laid off will receive a “comprehensive severance package.” This would include current pay and benefits until at least May 2nd. Employees will also be eligible for severance based on how long they’ve been with the company, six months of healthcare coverage through COBRA assistance, and one-on-one career coaching.
As of last September, Starbucks employeed around 361,000 employees who will not be impacted by this layoff. Rather than, the layoff will affect those in Starbucks’ 16,000 corporate support roles. Employees who work in roasting, manufacturing, warehousing, and distribution operations will not be impacted. Niccol mentioned that Starbucks will not change their hybrid work policies for existing employees, but the policy will change for future employees.
The reconstruction announcement comes after Starbucks beat low earning expectations for its first quarter under the CEO’s leadership. Niccol took the helm of Sept. 9 and implemented a “Back to Starbucks” plan, which calls for a focus on core coffee products, better pricing, and faster service.
