The Starbucks corporate headquarters in Seattle. “File:Starbuckscenter.jpg” by Coolcaesar is licensed under CC BY-SA 4.0.
Seattle-based Starbucks Coffee is laying off 1,100 corporate staff members as part of a shakeup led by CEO Brian Niccol.
Niccol, the former Chipotle CEO who took over the position at Starbucks last September, announced there would be corporate layoffs in January, although the extent of the layoffs and restructuring was publicly unknown until today.
In a letter to Starbucks “partners” — Starbucks continues to call all its employees “partners” regardless of ownership or management status — Niccol said that the company arrived at the “hard decision” to terminate 1,100 current corporate support roles, as well as several hundred open or unfilled positions.
Employees being laid off are being notified today and tomorrow, according to the letter.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol wrote. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.”
The layoffs do not affect roastery production staff or baristas, according to the letter.
“Our new structure is built to focus on priority work and is oriented to support the experience we create in our coffeehouses,” Niccol said. “We’ll simplify what we do and how we work to make it easier to drive the business forward.”
In addition to the layoffs, Starbucks said it is planning to tighten up flexible work arrangements for employees with “VP+” status in North America, including the requirement for in-person work at the Seattle or Toronto corporate offices at least three days a week.
“Generally, partners working remotely in director and below roles today will keep their remote status,” Niccol wrote. “Hiring for future roles will require partners to be Seattle or Toronto based, except for enterprise designated remote positions.”
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