Starbucks to Lay Off Corporate Workers in March: CEO Announces
Sales Struggles Lead to Job Cuts as Starbucks Focuses on Efficiency

Starbucks will be cutting corporate jobs as part of a strategy to improve sales and increase profits, CEO Brian Niccol announced. In a letter to employees, which was also shared on the company’s website, Niccol explained that the decision was necessary to make Starbucks more efficient and sustainable for the future.
Niccol, who became CEO in September, stated that while Starbucks is committed to its “Back to Starbucks” strategy to improve the customer experience, the company must also focus on internal efficiency. This will lead to layoffs in the corporate sector. The layoffs will not affect baristas or other in-store staff, nor will it impact investments in store hours.
“We are making thoughtful decisions about the future of our support organization. Unfortunately, some positions will be eliminated,” Niccol wrote. “We’ll communicate specific changes by early March.”
Although the exact number of layoffs remains unclear, Niccol emphasized the importance of transparency and wanted employees to hear about the changes directly from him.
The company has been facing challenges with lagging sales, and Niccol has made it clear that turning things around requires a return to the core values that made Starbucks successful. The “Back to Starbucks” strategy includes improvements to store design and customer experience, such as bringing back condiment bars and serving coffee in ceramic mugs.
Starbucks is also reintroducing the use of Sharpies to write customer names on cups and eliminating extra charges for customizing beverages with non-dairy milk. The company is also aiming for a four-minute wait time at cafés and has added coverage hours in over 3,000 locations.
In addition to these changes, Starbucks recently announced that it will only allow paying customers to use its restrooms and lounge areas, focusing on providing a better experience for those who are spending money in-store.
Starbucks is also enhancing its benefits for employees, including doubling its paid parental leave to 12 weeks. The company previously offered six weeks of paid time off for new parents. Starbucks is also continuing its commitment to its employees through its College Achievement Plan, which covers 100% of college tuition for eligible employees, and offering company stock to qualifying partners.
Despite recent challenges, Niccol remains optimistic about the company’s direction and praised the efforts of Starbucks employees in supporting the changes. “We have a lot of work ahead, but I’m proud of the progress we’ve made,” Niccol wrote.
Before Niccol’s arrival, Starbucks was facing pressure from unionization efforts and disappointing financial results. Niccol is working to address both of these challenges while improving profitability and creating a positive work environment. However, the company has also seen employee strikes at hundreds of stores, adding to the complexities Niccol faces in leading Starbucks forward.
By focusing on both operational efficiency and employee well-being, Starbucks aims to continue its position as a global leader in the coffee industry.