Starbucks to lay off 1,100 corporate workers in CEO’s restructuring plan
largest
in the company’s history.“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” CEO Brian Niccol
in a letter to staff.The company has around 16,000 corporate employees globally, including 10,000 in the US. Warehouse, roasting and store employees are not included in the cuts. Niccol first alluded to the layoffs in January 2025 as part of the CEO’s corporate restructuring plan.
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A bargaining breakdown and strikes: the ongoing union fight at Starbucks
“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 in a
to employees in January, stating the layoffs would be announced in mid-March. to improve store service times, cutting items from Starbucks’ menu and experimenting with new ordering algorithms.Niccol has also overseen a shift in the company’s approach to its stores unionizing, after workers represented by
have successfully unionized at over 500 stores across the US, with more than 10,500 workers.The union has been fighting for a first union contract at the company since the first store won its union election in late 2021.
In late 2024, contract negotiations broke down with workers
over the holiday season in December to demand economic improvements for workers at the bargaining table. The union hascriticized
Niccol’s compensation package, who received around $96m in compensation in his first four months in the job.