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Image used for illustrative purpose. A Starbucks logo hangs outside of one of the 8,000 Starbucks-owned American stores that will close around 2 p.m. local time on Tuesday as a first step in training 175,000 employees on racial tolerance in the Brooklyn borough of New York, U.S., May 29, 2018. Lucas Jackson, Reuters
Starbucks said on Monday it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his efforts to streamline the coffee chain and turn around its business.
The layoff would include current support partner roles and several hundred additional open and unfilled positions, Niccol said in a letter to employees.
"We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Niccol said. "Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."
The coffee chain has been battling weak demand for its higher-priced beverages in the U.S. and China. Investors have been betting on Niccol, who took the helm last year, to simplify the operating structure and revive the coffee-house culture at its U.S. stores.
Niccol, who is credited with reviving burrito chain Chipotle Mexican Grill, had in January said Starbucks would cut jobs and said more details would be announced by early March.
In his new role at Starbucks, Niccol has laid out a plan called "Back to Starbucks" in attempt to revive the business.
"We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need," Niccol said in the letter.
The layoffs would not affect in-store teams or the investments Starbucks is making in store hours, he said.
(Reporting by Neil J Kanatt and Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur)
