Starbucks to cut 1,100 corporate roles in CEO Niccol’s turnaround push

Starbucks said on Monday it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his turnaround efforts at the coffee chain that has been struggling with falling sales.

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol said in a letter to employees.

“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”

Niccol was named CEO last year at a time when the company’s shares had lost 40% of their value from the 2021 high due to weak demand in the U.S. and China.

Credited with turning around burrito chain Chipotle Mexican Grill, he put in place “Back to Starbucks” plan that focused on streamlining business through job cuts and by improving customer experience at its U.S. stores.

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Since taking the helm six months ago, Starbucks shares have rebounded more than 22%. They were marginally up in early trading on Monday.

Starbucks employs about 211,000 people in the U.S. and around 150,000 employees internationally, according to its 2024 report.

“We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need,” Niccol said, adding the move would not affect in-store teams or the investments Starbucks is making in store hours.

Separately, the company said it was removing a few “less popular beverages” from the menu, including several frappuccino blended beverages and the white hot chocolate, in line with Niccol’s push to simplify its menu.