Starbucks occurs 1,100 in the midst of streamlined movement

Starbucks is planning to dismiss 1,100 business employees worldwide as new Chairman and CEO Brian Niccol Stream lines operations.

In a letter to employees who were released on Monday, Niccol said that the company will inform employees who will be fired on Tuesday by noon. Niccol said that Starbucks also eliminates a few hundred open and non -filled positions.

“Our intention is to work more efficiently, to increase accountability, reduce complexity and to stimulate better integration,” Niccol wrote in the letter.

Starbucks has 16,000 employees of business support worldwide, but that includes some employees who are not affected, such as schedules and warehouse staff. Baristas in the shops of the company – which make up most of the 361,000 employees of the company worldwide – are not included in the dismissals.

Niccol said in January That business dismissals would be announced at the beginning of March. He said that the company had to reduce complexity and ensure that all work is under supervision by someone who can make decisions.

“Our size and structure can delay us, with too many layers, managers of small teams and roles that are primarily aimed at coordinating work,” Niccol wrote.

The dismissals of Starbucks come as other large companies make comparable movements.

Southwest Airlines Last week said that it was 1,750 jobs, or 15% of his business workforce, eliminated in the first major dismissal in the 53-year history of the company.

And last month, tire maker Bridgestone America Die a factory in Lavergne, Tennessee, and fired 700 employees there.

Starbucks hired Niccol last fall to turn the slow sale. He said he wants that Improve the service times – Especially during the morning rush and recovery stores as a community meeting.

Niccol also cuts items from the Starbucks menu and experiments with its order algorithms to better process the mix of mobile, drive-thru and in-store orders.

Starbucks’ worldwide sale of in the same store or the turnover at locations that open for at least a year, fell by 2% in his 2024 Fiscal YearIt ended on September 29. In the US, customers who were tired of the price increases the price increases from the price increases. In China, the second largest market, Starbucks stood for growing competition from cheaper rivals.

In the most recent quarter, however, the company Asked most of the sales expectations After Niccol had made changes that were visible to customers, such as the decision to Stop extra charging For non-zuivel milk.

Starbucks shares rose less than 2%on Monday.