Starbucks said on Monday (Feb 24) it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his turnaround efforts at the coffee chain, which has been struggling with falling sales.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol said in a letter to employees.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”
Niccol was named CEO last year at a time when the company’s shares had lost 40 per cent of their value from the 2021 high due to weak demand in the US and China.
Credited with turning around burrito chain Chipotle Mexican Grill, he put in place the “Back to Starbucks” plan that focused on streamlining business through job cuts and by improving customer experience at its US stores.
Since taking the helm six months ago, Starbucks shares have rebounded more than 22 per cent. They were up nearly 2 per cent in afternoon trading.
Reuters
