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In
a letter to employees, Starbucks Chairman and CEO Brian Niccol
said the Seattle coffee giant needs to ensure all work has a
clear and accountable owner who can make decisions. The company
also needs to reduce complexity and silos.
“Our size and structure can slow us down, with too many layers,
managers of small teams and roles focused primarily on
coordinating work,” Niccol wrote.
The layoffs won't impact baristas in Starbucks' stores. Niccol
said decisions will be communicated by early March.
“I do not take these decisions lightly, and I appreciate that
this will create uncertainty and concern between now and then,”
Niccol wrote. “I wanted to be transparent about our progress and
our plans and ensure that you hear about this work directly from
me.”
Starbucks has approximately 16,000 corporate employees
worldwide, including 10,000 in the U.S. and 6,000 in other
countries. The company employs a total of 361,000 people
worldwide, according to its annual report filed in September.
Starbucks saw disappointing sales over the last year as U.S.
customers pulled back on their spending and customers in China
flocked to lower-priced rivals.
In September, the company brought in Niccol, an experienced
marketer who previously led Taco Bell and Chipotle, to help it
turn things around.
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