Business
Starbucks cuts 1,100 administrative jobs: New CEO Niccol starts savings program
Starbucks is cutting 1,100 office jobs, but sparing cafes, to revitalize the struggling coffee giant under new CEO Niccol.

Starbucks cuts 1,100 jobs in its offices while staff in cafes remain untouched. The new CEO Brian Niccol, who has been in office since September, justifies the decision by wanting to streamline the organization to bring the stalled coffee giant back on a growth path. However, the company assures that no jobs in the more than 21,000 branches worldwide are affected. The job cuts mainly affect administrative functions in the US and Canada, including the headquarters in Seattle and the office in Toronto. Affected employees will receive a corresponding notice on Tuesday. Already in December, Starbucks announced upcoming layoffs and the intention to "declutter" hierarchies. Recently, the company recorded a decline of 4 percent in comparable sales for the Christmas quarter. Starbucks employs a total of around 361,000 people, including 16,000 in corporate headquarters, warehouses, roasteries, and distribution structures. Niccol, a former executive at Chipotle, plans further rationalizations. Top managers from the vice president level will in the future be required to be in Seattle or Toronto at least three days a week, while employees at director level or below may work with more flexible regulations. He himself is not contractually obligated to work from Seattle – however, his office in Newport Beach, California is not yet completed. For the past fiscal year, Starbucks reported revenue of 36.2 billion USD. The stock closed up 1.3 percent on Monday at the Wall Street. After the restructurings at headquarters in 2018 – when 350 positions had to be cut – this round represents the first major cut in years. "We want to become more efficient, clarify responsibilities and improve our integration," said Niccol. Analysts had expected the measure after the weak quarterly sales.