Starbucks Lays Off 1,100 Employees – Know the Reason Behind the Move in Nine Points

New Delhi, 26th February 2025: Coffee chain company Starbucks has prepared to lay off 1,100 employees globally as a part of a restructuring effort. In a letter to employees, CEO Brian Niccol stated that the company is making this move to address declining sales and improve operations.

Why This Decision?

Starbucks CEO Brian Nicol has been committed to bringing back customers who haven’t been deterred by $8 lattes and long wait times, yet recent months have seen increased pressure on sales. Starbucks CEO has announced this layoff as part of a broader restructuring plan for improving the company’s efficiency.

Nine things to know about Starbucks layoffs

1. Starbucks announced that it plans to lay off 1,100 corporate employees and close several hundred vacant or unfilled positions. According to the report, this layoff is the largest in the company’s history.

2. CEO Brian Niccol said in a letter to employees, ‘Our intention is to work more efficiently, increase accountability, reduce complexity and better integrate.

3. Starbucks has approximately 361,000 employees worldwide. Some employees of the company will not be affected by the layoffs. This includes roasting, warehouse, and barista employees working in the company’s stores.

4. In January, Niccol stated that the layoff announcement would be made at the beginning of March. He emphasized that all tasks should be overseen by someone capable of making decisions. He also mentioned that the company’s size and structure could slow down its operations.

5. This step has been taken as part of Niccol’s efforts to rethink the store experience for customers and streamline the business. It aligns with his pledge to bring back the more personal coffeehouse atmosphere Starbucks was originally known for.

6. Starbucks appointed Nicole as CEO last year to improve sluggish sales. He has said he wants to improve service times.

7. Starbucks’ global sales have declined by 2 percent in the past year to fiscal 2024.

8. Nicole has also seen a change in the company’s approach to unionization in stores, as employees represented by Starbucks Workers United have successfully formed unions in more than 500 stores across the US, which have more than 10,500 employees.

9. With this, the employees who are going to be victims of this layoff will continue to get salary and other benefits till May 2, 2025.