Starbucks Lays Off 1,100 Corporate Employees In Major Restructuring

Coffee giant Starbucks Corp SBUX shares are trading higher on Monday.

The company is implementing significant organizational changes as part of its “Back to Starbucks” initiative, aimed at streamlining operations and preparing the company for future growth.

The company announced that it would eliminate 1,100 support roles, along with several hundred additional unfilled positions.

Starbucks CEO Brian Niccol recognized the challenges of the decision. The company stressed its dedication to assisting impacted employees, offering a thorough severance package that includes career transition support.

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Alongside the layoffs, Starbucks is reworking its leadership framework. Effective immediately, vp+ leaders located in North America will be expected to work from the company’s Seattle (U.S.) or Toronto (Canada) offices at least three days a week.

Meanwhile, partners working remotely in director and below roles will keep their remote status.

Brian Niccol, who took over as the CEO last year, is working to reinforce Starbucks’ premium image by reducing discounts, aiming to improve in-store experiences.

Recently, Starbucks reported first-quarter revenue of $9.4 billion and earnings of 69 cents per share, both well above the consensus estimate.

Price Action: SBUX shares are trading higher by 1.5% at $113.43 at the last check Monday.

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