Starbucks coffee chain CEO Brian Nicol said on Monday that Starbucks will lay off 1,100 corporate employees and will not be hiring for hundreds of other open positions. The layoffs will not affect employees at the company's stores. In a notice to corporate employees, Nicholl said Starbucks is "simplifying our structure, reducing layers and duplication, and creating smaller, more nimble teams."
"Our purpose is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to have a greater impact on our priorities," Nicol wrote.
The layoffs come as Starbucks attempts to lure coffee drinkers back to its stores after four consecutive quarters of declining same-store sales. Since Nicol took the helm last year, he has been working to revamp operations, including speeding up service, as customers in the U.S. and China, its two biggest markets, shift to cheaper rivals.
As of last year, Starbucks had approximately 16,000 non-store employees. The layoffs will affect employees in corporate support departments but not those in baking, manufacturing, warehousing and distribution.