'Too many layers' | Starbucks will target middle managers in forthcoming layoffs

Starbucks plans to lay off an unspecified number of corporate employees as part of a broader effort to restructure its business operations, according to chairperson and CEO Brian Niccol.

The Seattle-based coffee giant aims to streamline decision-making, reduce organizational complexity, and eliminate silos within its corporate structure.

The layoffs, which will not impact baristas or store-level employees, are expected to be communicated by early March. Starbucks employs 16,000 corporate staff worldwide, including 10,000 in the US and 6,000 in other countries, as part of its total global workforce of 361,000 people.

Niccol, who joined Starbucks in September after leading successful turnarounds at Taco Bell and Chipotle, emphasized the need for accountability and clarity in corporate roles. "Our size and structure can slow us down, with too many layers, managers of small teams, and roles focused primarily on coordinating work," Niccol wrote in the letter.

Challenges for Starbucks

The restructuring comes amid a challenging business environment for Starbucks. The company has faced declining US sales as customers scale back discretionary spending and increased competition from lower-priced rivals in China.

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While acknowledging the uncertainty the layoffs may create for employees, Niccol stressed the importance of transparency. "I do not take these decisions lightly," he said. "I wanted to ensure you hear about this work directly from me."

The firm has not disclosed the number of employees affected or specific roles targeted in the layoffs, however, the move signals a continued focus on improving operational efficiency and positioning the company for long-term growth under Niccol's leadership.

Optimization trends

HR leaders and business executives will recognize the strategy as part of a broader trend among corporations aiming to balance workforce optimization with maintaining employee trust during restructuring efforts. The effectiveness of those initiatives often hinges on clear communication, well-defined accountability, and the ability to adapt to evolving market conditions.

As Starbucks works to navigate economic pressures and regain momentum, the restructuring could play a critical role in getting it match to meet customer expectations in an increasingly dynamic and ever-shifting global market.