CEO Brian Niccol’s decision affects 7% of the workforce and seeks to increase the company’s operational efficiency
A He announced the resignation of 1,100 corporate employees, representing 7% of their global workforce outside stores. The decision of the company CEO, it is part of a strategy to increase operational efficiency.
The measure, disclosed by This Monday (24.FEV.2025) aims to accelerate the company’s recovery and boost its growth. The affected employees will be notified by Tuesday (25.FEV) and were told to work remotely during this week.
Starbucks seeks to revitalize the brand through this restructuring. Since most of their workforce operates in coffee shops, cuts mainly affect corporate positions, without affecting employees who work directly on storage, manufacturing, distribution and roasting operations of products.
In the United States, until September 2024, Starbucks employed 211,000 employees, and 95% worked in stores. Outside the US, the company had 150,000 employees, maintaining similar proportions.
Off employees will continue to receive salary and benefits until May 2, as well as compensation based on length of service. The company will also offer support for the career transition.
“I recognize that this is difficult news. However, we believe this change is necessary to position Starbucks to future success”Said Brian Niccol.
Return to offices
According to Bloomberg, Starbucks will also begin to demand that high-level employees such as vice presidents and higher positions work in person in Seattle or Toronto offices at least 3 times a week.
Employees at board or lower levels may continue to work remotely. However, the company will require new contractors for most positions to be located in Seattle (United States) or Toronto (Canada).
Strike employees
The cut occurs 2 months after workers from more than 300 stores in the United States A strike on Christmas Eve of 2024. At the time, stores in 45 US states joined the stoppage, motivated by salary-related impasses, personnel allocation and work scales.
Workers’ claims include salary adjustments that accompany inflation and cost of living in large cities, as well as more predictable working hours.
Striking employees in Chicago (Illinois) stated that the average salary of $ 21 per hour is insufficient in the face of current conditions, especially since they rarely receive the full workload of 40 hours per week.
