Starbucks to cut 1,100 jobs, simplify structure
By Benjamin Chiou
Date: Monday 24 Feb 2025
(Sharecast News) - Starbucks has announced plans to eliminate more than 1,000 jobs as part of a restructuring plan to simplify its structure and operate more efficiently.
In a statement on Wednesday, the coffee chain said it is taking the "hard decision" to get rid of 1,100 support partner roles as well as "several hundred" additional open and unfilled positions.
The move was the culmination of the 'Back to Starbucks' plan communicated in January, when the company said it was evaluating the role, structure and size of its global support teams.
Boss Brian Niccol said the decision was "difficult" but positions Starbucks for "future success".
"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration," the chief executive said.
"All with the goal of being more focused and able to drive greater impact on our priorities."
Employees whose jobs are being eliminated will be told on Tuesday, the company said, adding that "comprehensive severance packages" would be provided.
In late-January, Starbucks reported its results for the fiscal first quarter, with consolidated net revenues of $9.4bn flat on the prior year. As of 29 December, it had 40,576 stores worldwide, 53% of which are company-operated.
Starbucks shares were 1.4% higher at $113.34 by 1115 in New York.
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