- Starbucks is laying off 1,100 corporate employees this week, the company said.
- The coffee chain will notify affected employees by midday Tuesday.
- CEO Brian Niccol is trying to turn around results at the Seattle-based chain.
Starbucks is laying off 1,100 corporate employees this week and will halt hiring for hundreds of open roles.
Employees whose jobs are being eliminated will hear from Starbucks by midday Tuesday, the company said.
"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Starbucks CEO Brian Niccol said in a letter announcing the layoffs on Monday. "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."
Employees at Starbucks' stores will not be affected by the layoffs, Starbucks said.
Starbucks currently has 16,000 employees across its corporate offices as well as other areas of the business, such as roasting operations. Not all of those employees are on teams affected by the layoffs, Starbucks said.
The company has been seeking to rejuvenate sliding sales in the US, its main market. Niccol, who was named CEO in September last year, has said the company needs to prioritize the customer experience, including focusing more on baristas, which the company calls "partners."
"I recognize the news is difficult," he said in the memo. "We believe it's a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve."
Starbucks has been making changes to its stores since Niccol joined the company in September.
Partners at stores are now encouraged to hand-write notes to customers on their paper cups. Starbucks also rolled back its open-door policy and now requires patrons to make a purchase in order to use the store bathroom or get a free cup of water.
Under Niccol, the company has also reduced the number of promotions it offers members of Starbucks' rewards program.
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