Seattle, Washington – Starbucks, under the leadership of Chairman and CEO Brian Niccol, is taking steps to streamline operations with plans to lay off 1,100 corporate employees globally. This decision comes as part of an effort to operate more efficiently, increase accountability, reduce complexity, and drive better integration within the company’s structure. Niccol aims to eliminate several hundred open and unfilled positions and ensure that all work is overseen by individuals capable of making informed decisions.

Niccol, who joined Starbucks last fall to address sluggish sales, is focused on enhancing service times, particularly during busy morning rushes. Additionally, he is working to reestablish Starbucks stores as not only coffee destinations but also community gathering places. As part of his strategy, Niccol is also revising the Starbucks menu, experimenting with ordering algorithms, and aiming to improve the overall customer experience.

The restructuring efforts come after Starbucks reported a 2% decline in global same-store sales in its fiscal year, which ended on September 29. This drop was attributed to various factors including customer dissatisfaction with price increases and growing wait times. In China, Starbucks’ second-largest market, the company faced increased competition from more affordable alternatives. Despite these challenges, Starbucks has managed to exceed sales expectations in its most recent quarter, with changes implemented by Niccol resulting in positive outcomes visible to customers.

In response to these changes, Starbucks shares saw a modest increase of less than 2% following the announcement of the corporate layoffs. Niccol’s strategic approach focuses on driving growth, enhancing customer satisfaction, and repositioning Starbucks as a leader in the coffee industry. Through these initiatives, Starbucks aims to navigate the evolving landscape of the coffee market and strengthen its position as a global coffee powerhouse.