Starbucks, the coffee giant, announced the reduction of over ۲۰۰ jobs in its administrative sector through a layoff notice. This action is part of a transformation strategy that began two years ago under its new CEO, Brian Niccol.
Details of the Layoffs
According to this notice, about ۱۲۰ employees from the support team responsible for designing and developing stores will be separated from their jobs due to their unwillingness to relocate from Seattle to Nashville. Additionally, ۱۰۴ of these layoffs are related to organizational changes stemming from restructuring plans.
The date for the first layoffs is set for October ۱۹, ۲۰۲۶, and all layoffs will be completed by November ۱, ۲۰۲۶. Starbucks has emphasized that these changes will not affect the overall strategy of its coffee shops and will continue to develop its "third place" experience.
Transformation and Investment Plans
The company is building a new headquarters in Nashville at a cost of $۱۰۰ million, which is expected to house about ۲۰۰۰ employees, while maintaining its headquarters in Seattle. After taking responsibility in September ۲۰۲۴, Niccol initiated transformation plans to boost the coffee shop business.
This program includes efforts to redesign the interior of stores to encourage customers to stay longer, as well as creating "personal touches" such as writing customers' names on cups. Additionally, Starbucks is working on ensuring the right staffing in stores, optimizing mobile orders, and providing customers with the ability to use extra materials themselves.
Last year, the company closed some underperforming stores and reduced ۹۰۰ non-retail jobs, while also blocking many open job positions.
