50°
Starbucks CEO Brian Niccol announced the layoffs in a message to employees on Monday, Feb. 24. The job cuts will affect non-retail support employees, as the coffeehouse chain works to streamline leadership and eliminate duplicate roles.
Several hundred open but unfilled positions will also be removed. In-store workers and store hours won't be affected
Niccol said the decision is part of the company's broader "Back to Starbucks" plan, which aims to increase efficiency while also trying to motivate customers to stay in cafés.
"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," wrote Niccol. "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."
Affected employees will be notified by midday Tuesday, Feb. 25. Starbucks said they'll receive severance packages, healthcare coverage, and career transition services.
Additional changes to roles and reporting structures will be communicated by the end of the week.
"I recognize the news is difficult," Niccol wrote. "It is not a decision the leadership team took lightly. We understand the real effect this has on partners' lives and their families.
"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."
A Starbucks coffee cup.
As part of the restructuring, Starbucks is also tightening its corporate work policies. Vice presidents and above in North America will now be required to work in the company's Seattle or Toronto offices at least three days a week.
Director-level employees and below will retain remote status. Future hires must be based in one of the two cities unless designated as remote positions.
The layoffs follow a series of changes as Starbucks pushes to reshape its operations.
The company recently implemented a new Coffeehouse Code of Conduct requiring customers to make a purchase to use café spaces or restrooms, reversing a 2018 policy that allowed unrestricted access. Additionally, Starbucks introduced unlimited free coffee refills for in-store customers and expanded employee training to improve service and efficiency.
Starbucks had about 16,000 employees working outside of cafés in 2024, CNBC reported.
Click here to follow Daily Voice Bethlehem and receive free news updates.
