Starbucks’ new CEO Brian Niccol is gearing up to make another bold move in his attempts to get back the storied coffeehouse chain to its former glory. In a letter shared on Starbucks’ official website, Niccol announced a wave of corporate layoffs.
According to the letter, the move is part of the Back to Starbucks turnaround plan and will help the company operate more efficiently. The job eliminations will lead to smaller support teams but won’t affect in-store workers or “the investments we are making in store hours.”
The affected employees will be informed about the decision in early March.
“I do not take these decisions lightly, and I appreciate that this will create uncertainty and concern between now and then. I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me,” Niccol said in the letter.
Since taking over as Starbucks’ CEO in September, Niccol announced a series of changes that are aimed to improve the company’s slumping business. This includes revamping Starbucks locations in the U.S., adding a more personal touch to interaction with customers, reducing waiting time to four minutes or less, and simplifying the menu.
Starbucks’ stock remained mostly flat on Friday, closing at $95.13. The company’s shares have been 3.21% up since the start of the year.