By Evie Liu

Starbucks said on Monday that it will lay off more than 1,000 corporate employees as the coffee chain tries to revamp its business and improve lagging sales under CEO Brian Niccol.

Starbucks said in January that it was evaluating the role, structure, and size of its global support teams and looking to remove some positions as needed. In addition to cutting around 1,100 corporate employees, the company also canceled several hundred open positions.

"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," wrote Niccol in a statement on Monday, "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities."

Starbucks had 16,000 corporate employees as of September. The company said the layoffs wouldn't affect workers in its cafes, or in roasting, manufacturing, warehousing, and distribution.

Starbucks has been struggling with declining sales since last year as high prices and long wait times drive customers away. Niccol, who left the role of CEO of Chipotle Mexican Grill to head Starbucks in September, has pledged to revive Starbucks's community coffee shop vibe and speed up its service by simplifying menus and streamlining operations.

Starbucks shares were 0.6% higher on Monday, bringing their gain in 2025 to about 23%. Investors had been expecting the job cuts.

Write to Evie Liu at evie.liu@barrons.com

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February 24, 2025 10:07 ET (15:07 GMT)

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