Starbucks to lay off 1,100 employees this week as CEO aims to deliver on turnaround
Published On Feb 24, 2025, 8:55 AM
Starbucks plans to lay off 1,100 employees as part of CEO Brian Niccol's initiative to streamline operations and focus on a turnaround strategy. The layoffs will impact corporate support roles, while in-store employees will remain unaffected. Niccol aims to create a more efficient organization by reducing management layers and complexity. This comes after Starbucks reported a drop in quarterly earnings and ongoing declines in same-store sales, indicating challenges the company is facing. Severance packages will be provided to those laid off, including healthcare benefits and job assistance.
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The restructuring effort aims to improve Starbucks' operational efficiency and focus on core business areas, which could enhance productivity and profit margins. While the immediate impact of layoffs can be negative for company morale and public perception, in the long run, if executed effectively, it may lead to a more streamlined operation that could boost financial performance.
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