Starbucks to layoff 1,100 corporate employees by tomorrow

Multinational coffee chain Starbucks is set to lay off 1,100 corporate employees as new Chairman and CEO Brian Niccol aims to streamline operations.

In a letter addressed to employees on Monday, Nicol said the company would notify employees who are being laid off by mid-Tuesday. The company is also streamlining several open and unfulfilled positions, AP reported.

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in the letter.


Starbucks currently has 16,000 corporate support employees worldwide, including some employees are are not affected, like roasting and warehouse staff. Additioanlly, Baristas in the company's stores are not included in the layoffs.

In January, Nicol had said corporate layoffs would be announced by March. He had said all work must be overseen by someone who can make decisions while the the company simplifies the structure and silos within the company that slow down communication.

“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol wrote.

Nicol was hired last year to bring changes to sluggish sales. He has said he wants to improve service times, especially during the morning rush, and reestablish stores as community gathering places.

The new CEO is also cutting down on the coffee giant's menu and is experimenting with its ordering algorithms to better handle mobile, drive-thru and in-store orders.