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Starbucks will reduce 1,100 office jobs, while the new CEO Brian Niccol tries to revive the world’s largest cafe chain.
The company said on Monday that the corporate roles staff will have to work remotely this week because it informs the employees who will be discharged.
Job reduction are first for Starbucks Corporate workers since 2018, when about 350 is eliminated. Starbucks does not reduce any jobs within its cafes.
The employees who have been discharged will receive a message on Tuesday, the company said.
Niccol is hired in September with the goal Turn Starbucks As traffic and the sale of the feet were lower.
In a letter to the staff on Monday, Niccol said Starbucks would reduce 1,100 jobs that were currently fulfilled, as well as “several hundred” open and unfulfilled positions.
Most 361,000 Starbucks employees work in more than 21,000 cafes in which they operate around the world. About 16,000 employed in corporate support, including at its headquarters in Seattl, as well as in the development of stores, baking, production, warehouse and distribution. Starbucks did not determine the number of corporate support jobs that exist within the company.
Starbucks suffered an extended slide to sell the same store, including a fall 4 percent In the quarter that ended in December.
Niccol announced the upcoming job reduction last month, saying that the company had too many layers. “Our intention is to act more effectively, increase responsibility, reduce complexity and encourage better integration,” he said in a message on Monday.
The shares rose by 0.6 percent on Monday shortly after the Bell Wall Street opened.
In his message, Niccol said that the leaders of a company with the status of vice-presidents or more, who are remotely working, will need to spend at least three days a week at Starbucks’s offices in Seattl or Toronto, a Canadian company. Employees with director title and lower with remote work status will be able to retain that status.
This week, however, Starbucks asked the corporate staff to work remotely because it informs 1,100 employees who will be discharged, citing reasons for privacy. Those whose jobs have been reduced will be sent by E -mail on Tuesday from a member of the executive leadership team, the company said.