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Starbucks’ headquarters in Seattle. (GeekWire Photo / Kurt Schlosser)
Starbucks is cutting 1,100 corporate positions as part of a bid to create “smaller, more nimble teams,” CEO Brian Niccol wrote in a message to employees Monday.
It’s one of the largest layoffs ever at the Seattle-based coffee giant and comes as Niccol tries to lead a turnaround of a slumping business after taking over as CEO in September.
The company is also slashing several hundred open and unfilled positions.
“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.”
Starbucks employed about 16,000 workers in corporate roles as of September — that number also includes roasting, manufacturing, warehousing, and distribution employees, who were not impacted by the layoffs.
The cuts do not impact in-store employees.
Starbucks had around 361,000 employees worldwide as of September.
Niccol, the former Chipotle CEO, also laid out an updated remote work policy for North America leadership teams, requiring that roles at the vice president level and above be in the office in Seattle or Toronto three days a week.
He added: “Generally, partners working remotely in director and below roles today will keep their remote status. Hiring for future roles will require partners to be Seattle or Toronto based, except for enterprise designated remote positions.”
Starbucks last year began requiring its corporate workforce to be in the office three days per week.
Starbucks reported a 23% decline in earnings per share in its most recent quarter. Same-store sales declined 4%.
Other companies in the restaurant industry, including Applebee’s parent Dine Brands and Panera Bread, have recently announced layoffs.
Niccol, who previously led Taco Bell, earned nearly $100 million in total compensation during his first four months at Starbucks, Insider reported last month. He’s the fourth CEO at Starbucks in the past three years.
Read Niccol’s letter to employees here.
Previously: On first earnings call, Starbucks CEO Brian Niccol details plan to ‘bring order’ to mobile ordering
