Starbucks Job Cuts have been announced as part of a $1 billion restructuring plan under CEO Brian Niccol. The coffee giant said it will close hundreds of underperforming stores in North America and cut 900 corporate jobs to reduce costs improve efficiency and focus resources on reviving sales.
Most of the Starbucks Job Cuts will affect corporate roles in North America, with employees set to be notified soon. Around 400 stores are expected to close by the end of the fiscal year as the company seeks to improve financial performance and remodel remaining outlets to enhance customer experience.
Brian Niccol, who joined Starbucks last year has emphasized trimming management layers and boosting investment in store level staffing and training. Despite earlier job cuts in February affecting 1,100 employees this latest move aims to streamline operations and speed up service times across key markets.
Labor unions criticized Starbucks for making major decisions without worker input pointing to ongoing unionization efforts at over 600 U.S. locations. Meanwhile analysts noted the company has faced six consecutive quarterly declines in U.S. sales with shares down about 12% over the past year.
Starbucks said it will continue to open new stores in select international markets including 80 in the UK and 150 across Europe the Middle East and Africa. Despite the Starbucks Job Cuts Niccol insists these steps are necessary to build a better stronger and more resilient Starbucks for the future.
