Mass layoffs at Starbucks show Brian Niccol’s turnaround plan isn’t all Sharpies and cinnamon
Starbucks said it’s laying off 1,100 corporate workers by tomorrow morning and also won’t fill hundreds of open roles — a significant workforce reduction that adds a new layer to CEO Brian Niccol’s turnaround plan for the coffee chain.
The cuts, which Starbucks warned about last month, amount to one of the largest layoffs in Starbucks’ history and come as the chain has struggled with slipping sales for the past year.
Corporate cost cutting joins a long list of Starbucks reforms being ushered in by Niccol. The company has already bought 200,000 Sharpies (for handwritten notes on cups), scaled back discounting, killed its olive oil coffee experiment, and brought back ceramic mugs (which it can’t stop talking about). Starbucks has a goal to scrap 30% of its menu items over the next seven months, and it’s tossing out a handful of what it says are underperforming drinks in early March.
Brian Niccol, who started in September, made headlines last month when a regulatory filing revealed that he made $96 million in his first four months on the job.
The cuts, which Starbucks warned about last month, amount to one of the largest layoffs in Starbucks’ history and come as the chain has struggled with slipping sales for the past year.
Corporate cost cutting joins a long list of Starbucks reforms being ushered in by Niccol. The company has already bought 200,000 Sharpies (for handwritten notes on cups), scaled back discounting, killed its olive oil coffee experiment, and brought back ceramic mugs (which it can’t stop talking about). Starbucks has a goal to scrap 30% of its menu items over the next seven months, and it’s tossing out a handful of what it says are underperforming drinks in early March.
Brian Niccol, who started in September, made headlines last month when a regulatory filing revealed that he made $96 million in his first four months on the job.
