Starbucks to Cut Corporate Jobs Amid CEO Brian Niccol’s “Back to Starbucks” Plan
Starbucks CEO Brian Niccol has announced that the company will be cutting corporate jobs in order to drive efficiency and boost profitability. This decision comes as part of Niccol’s efforts to implement his “Back to Starbucks” plan, which aims to enhance customer experience and turn around the company’s lagging sales.
The cuts will focus on the corporate organization, but will not affect in-store teams or the investment in store hours. Niccol said that “it will involve difficult decisions and choices” but will ultimately benefit the company and its customers. He plans to communicate the changes by early March, but has not disclosed the number of layoffs that will be implemented.
Despite the job cuts, Niccol remains committed to enhancing the work environment for Starbucks employees. This includes doubling the company’s parental leave benefits starting in the spring, filling 90% of retail leadership roles internally, covering 100% of college tuition for thousands of employees, and offering company stock to eligible workers.
The changes come as Niccol looks to implement a plan to get Starbucks back to its roots as a coffee house, by reintroducing condiment bars to stores and enhancing the in-store aesthetic with personal touches, such as ceramic mugs and customizing cups with Sharpies. The company is also reducing the number of corporate employees it welcomes to the coffee shops by restricting access to only paying customers, and ensuring that all 3,000-plus stores achieve a four-minute wait time.