Starbucks is preparing for layoffs

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Lerato Khumalo

Starbucks shared the message of its Chief Executive Brian Niccol in its notification to the US Securities and Exchange Commission (SEC).

In his message, Niccol stated that they shared the plan to revitalize the company in September last year and expressed that he was satisfied with the progress made, although there was still more work to be done.

Pointing out that the first studies focused on branches in the USA and Canada, Niccol explained that while trying to transform the business globally, they also needed to examine the role, structure and size of support teams around the world.

Pointing out that there are some opportunities to work more efficiently, Niccol said, “We need to make sure that all our work has a clear owner, who can make decisions and who is responsible for achieving the goals. This will help us move faster.” made his assessment.

Noting that support teams need to meaningfully change their organization and way of working, Niccol said:

“Unfortunately, I anticipate that we will make layoffs and reduce the size of our support teams going forward. This work will not impact our in-store teams or our investments in store hours. We will communicate changes in early March.”