Starbucks to cut 1,100 corporate jobs — or 7% of non-store workers in latest layoffs

Core Points - Starbucks plans to cut 1,100 corporate jobs, representing 7% of its non-retail workforce, as part of a strategy by new CEO Brian Niccol to streamline operations and enhance efficiency [1][3][6] - The layoffs will not impact store employees or those in warehousing, manufacturing, distribution, and roasting operations [1][3] - The company employed 211,000 people in the U.S. as of September, with 95% working in company-operated stores, and an additional 150,000 employees internationally [3] Restructuring Plans - Niccol's restructuring includes removing 13 drinks from the menu and aims to reduce the menu by 30% by September, focusing on premium beverages and reintroducing popular seasonal items [1][4][6] - Corporate staff have been instructed to work remotely for a week in preparation for the transition [4] - Affected employees will receive pay and benefits until May 2, with severance based on tenure, and the company will provide career transition support [9] Operational Changes - Niccol has implemented new workplace policies, requiring vice presidents and higher-ranking executives to work in Seattle or Toronto offices three days a week, while lower-level employees can maintain remote work [12][13] - The company is also reversing previous leadership decisions and reinforcing a return-to-office mandate, with non-compliance potentially leading to termination [13] - Starbucks has closed several hundred open and unfilled positions as part of the restructuring effort [9] Market Response - Following the announcement, Starbucks shares saw a slight increase of less than 1%, with the stock climbing nearly 17% over the past 12 months, compared to an approximate 18% rise in the S&P 500 [7][8]