Starbucks Is Laying Off 1,100 Corporate Staffers This Week

Starbucks said it would notify laid-off employees on Tuesday.

ANGELA WEISS / AFP via Getty Images

• Starbucks said it would lay off 1,100 corporate employees this week.
• The coffee chain said it would notify affected employees by midday Tuesday.
• CEO Brian Niccol is trying to turn around results at the Seattle-based chain.

Starbucks said it would lay off 1,100 corporate employees this week and halt hiring for hundreds of open roles.

Employees whose jobs are being eliminated will hear from Starbucks by midday Tuesday, the company said.

"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," CEO Brian Niccol said in a letter on Monday announcing the layoffs. "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."

The company said employees at Starbucks' stores would not be affected by the layoffs.

Starbucks has 16,000 employees across its corporate offices and other areas of the business, such as roasting operations. It said that not all of those employees were on teams affected by the layoffs.

Starbucks has been seeking to rejuvenate sliding sales in the US, its main market. Niccol, who was named CEO in September, has said the company needs to prioritize the customer experience, including focusing more on baristas, whom the company calls "partners."

"I recognize the news is difficult," he said in the memo. "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."

Starbucks has been making changes to its stores since Niccol joined the company.

Partners at stores are now encouraged to write notes to customers on their paper cups. Starbucks also rolled back its open-door policy and requires patrons to buy something in order to use the store's bathroom or get a cup of water.

Under Niccol, the company has also reduced the number of promotions it offers members of Starbucks' rewards program.

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