Starbucks plans to lay off 1,100 corporate employees globally as its new chairman and CEO, Brian Niccol, streamlines operations, the Associated Press reports.
In a letter to employees released Monday, Niccol said the company will inform employees who are being laid off by midday Tuesday. Niccol said Starbucks is also eliminating several hundred open and unfilled positions.
Starbucks has 16,000 corporate support employees worldwide, but that includes some employees who aren’t impacted, such as roasting and warehouse staff. Baristas in the company’s stores are not included in the layoffs.
Niccol said in January that corporate layoffs would be announced by early March. He said all work must be overseen by someone who can make decisions while the Seattle coffee giant reduces the complexity of its structure and eliminates silos within the company that slow communication.
Niccol is also cutting items from Starbucks’ menu and experimenting with its ordering algorithms to better handle its mix of mobile, drive-thru, and in-store orders.
