Starbucks lays off 1,100 employees worldwide

Since taking over the company, the CEO has implemented a plan focused on restructuring the business through job cuts and improving the customer experience. “We are simplifying our structure by creating smaller, more agile teams,” Brian Niccol said in a letter to employees. “Our goal is to operate more efficiently, increase accountability, reduce complexity and improve integration,” he added.

Niccol was named CEO in August last year, at a time when the company's shares had lost 40% of their value due to weak demand in the US and China. Credited with reviving burrito chain Chipotle Mexican Grill, Starbucks shares have since rebounded more than 22%.

Starbucks employs about 211,000 people in the U.S. and approximately 150,000 internationally, according to the 2024 report. “We will continue to hire for priority positions that fit into our new support structure and add the capabilities we need,” Niccol said, adding that the move would not affect store teams or investments Starbucks is making.

Additionally, the company announced it would remove some “less popular drinks” from its menu, in line with its strategy to simplify the menu. Starbucks shares rose 1.55% to $113.27 (108.18 euros).