Starbucks plans to lay off 1,100 corporate employees globally as new Chairman and CEO Brian Niccol streamlines operations.
In a letter to employees released Monday, Niccol said the company will inform employees who are being laid off by midday Tuesday. Niccol said Starbucks is also eliminating several hundred open and unfilled positions.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in the letter.
Starbucks has 16,000 corporate support employees worldwide, but that includes some employees who aren’t impacted, like roasting and warehouse staff. Baristas in the company’s stores — who make up most of the company’s 361,000 employees worldwide — are not included in the layoffs.
Niccol said in January that corporate layoffs would be announced by early March. He said the company needed to reduce complexity and ensure that all work is overseen by someone who can make decisions.